THE STATE OF THE EGG MARKET IN UKRAINE AND OBSTACLES TO ITS EFFECTIVE DEVELOPMENT

Abstract

The importance of consuming eggs for humans is beyond doubt. The micronutrients necessary for the human body in this product provide a steady demand for this product. The consumption of eggs in Ukraine per capita is about 300 pcs per person per year. Egg poultry farming in Ukraine is characterized by development and concentration in large agricultural enterprises and agro holdings, which have created technologically new, equipped with modern machinery and equipment of poultry farms. Together with the favorable preconditions and the general development of the industry, the egg market demonstrates high volatility of the value of production, complicated the formation of long-term export links, uncertainty of the future development strategy. In the last decade, the poultry industry has shown strong growth, characterized by consolidation and integration of enterprises, an increase in the number of poultry and an increase in production volumes. Obstacles to the development of industrial egg poultry farming are the crisis and transformational phenomena that are currently taking place in the Ukrainian economy. Due to the unfavorable economic situation there is a significant reduction in the production of eggs. Obviously, an important factor in making a profit from the production of chicken eggs is the price of their sale. This is - difficult-predicted value, which within a year is characterized by considerable volatility. The volatility of egg selling prices is affected by a variety of factors: from macroeconomic factors such as market conditions, export policies, to the pricing policy of giant companies (Avangard, Ovostar, etc.), the concentration and integration of production which creates additional opportunities to reduce the cost of production, and hence a decrease in the selling price during peak periods of egg collection, which is also observed in our state. The price policy on the egg market was negatively influenced by the devaluation of the hryvnia, which had a corresponding effect on its volatility in 2017. Currently, one of the promising markets for Ukrainian egg producers is the European Union, so it's worth paying attention to the development of export activity. Ukraine has an appropriate quota for export of chicken eggs in the quantity of 3 thousand tons and for egg products - 1,5 thousand tons. This fact motivates domestic producers to modernize production and introduce higher standards of product quality. Impediments to the development of Ukrainian egg exports were introduced in 2017 in foreign countries customs restrictions on the import of Ukrainian poultry products. Because of the decline in world egg prices over the last year, the domestic market for egg producers is more attractive than international ones. The study of the egg market in Ukraine and the obstacles to its development indicates that in order to ensure the competitiveness and efficiency of egg poultry farming functioning, it is necessary to pay attention to the development of a strategy for "outbreak", the purpose of which is to identify negative trends in the market and adjust its own industrial policy of the enterprise in the required direction. In addition, the decline in profitability of the industry and the growth of enterprise costs cannot be offset by the increase in prices for products. Population, suffering from rising prices for tariffs and services and reducing their own purchasing power, is likely to reduce egg consumption, which will lead to even more threatening consequences for the egg sector. Attention should be paid to the development and implementation of an innovation and modernization mechanism that will improve the feed base and technologies of poultry farming, improve logistics, organization of personnel management, etc. The monopolistic position of individual enterprises in the industry will not ensure its development and indicates the need for state and local support