FAO: Revenue of Ukrainian beef industry may grow to US$2 bln per year

"Beef is the greatest niche of Ukraine's agribusiness," FAO economist Andriy Yarmak said. "With annual revenues now under US$100 million, it could potentially be brought up to US$2 billion without increasing herds."

According to Yarmak, who works on dairy and meat sector projects in Ukraine, prospects for Ukrainian beef producers are very promising, as Ukrainian prices for feed grain and protein meals are among the lowest in the world, and the country is much closer to major beef markets in the Middle East and North Africa than their current suppliers. Until recently, the missing link for building an efficient value chain has been knowledge, but this is now developing.

The Ukrainian cattle sector is driven by the dairy industry. Each year around 1 million dairy bulls are slaughtered without being fattened to beef condition. Advanced grain-based feeding and processing technologies, combined with exports, could help farmers raise their revenue from US$1.5 to US$3.5 per kg of live weight.

"Today we are providing our farmers with detailed technological and marketing roadmaps based on the best global practices fully adapted to Ukrainian conditions and proven by calculations," he added.

Increased beef production in Ukraine could actually reduce pollution by cutting transportation requirements, Yarmak said. Feed grains and oil meals currently being exported in large volumes could be utilized to feed livestock in Ukraine. Greener livestock production is also suggested, and FAO and the European Bank for Reconstruction and Development are expected to focus on these aspects in coming months.

Ukraine's Deputy Minister for Agricultural Policy and Food, Olha Trofimtseva, in turn said, that beef production is considered by the ministry as one of the most promising sectors in the country's agriculture, despite rather modest production volumes.

Read alsoUkraine sees reduction in pork, beef output since year's start"I am sure that the focus of agricultural policies including state-supported programs on animal husbandry, combined with world demand and our competitive advantages, will soon give tangible results in both the beef and dairy sectors," she said.

"We do understand the importance of the beef sector, not only on its own but as a possible accelerator for other complementary sectors with value added," she added. "High-quality beef – made in Ukraine and sold all over the world in supermarkets or restaurants and recognized by its brand – is our goal."