Continuing the spring review of the agri-food market, after analysing the production of pork, eggs and butter, the next important agricultural production segment to be examined is lamb.
As of 2024, lamb production in Ukraine is a relatively minor component of the meat industry, lagging significantly behind pork and chicken in terms of both volume and growth rates. The lamb sector currently accounts for less than 1% of the country’s total meat production. However, there is also a positive trend in the development of niche farms that are focused on exports and organic products. These farms use intensive animal husbandry technologies and genetic material improvement.
Infrastructure constraints remain a significant barrier to the development of the lamb market in Ukraine. The industry is facing challenges due to a shortage of modern slaughterhouses that meet international standards and a limited number of enterprises capable of performing the full processing cycle. Specialised sheep farms are few and far between, and those that do exist operate in isolation, not integrated into a single supply chain. However, despite these difficulties, new opportunities are emerging due to investments in vertical integration, i.e. the establishment of enterprises that encompass all stages of production, from cultivation to export sales. Notably, there has been a surge in interest from Gulf countries in Ukrainian halal lamb, which presents a substantial opportunity for export expansion.
There is a growing demand for lamb in foreign markets, particularly in the Middle East, including the UAE, Saudi Arabia and Qatar. These countries are seeking reliable suppliers of high-quality halal lamb. China represents a potentially lucrative market, but one which is also somewhat challenging to navigate due to the presence of both veterinary and customs barriers. The European Union is open to Ukrainian products, but requires compliance with high quality standards, certification and traceability of the production chain. The key benefit of Ukrainian lamb is its environmental sustainability. It is produced without the use of growth hormones, which enhances its appeal to premium consumers.
The industry’s development prospects include expanding its export potential, certifying production to international standards, forming farmers’ co-operatives and attracting investment to create integrated enterprises. Ukraine has the potential to become a regional exporter of lamb due to its favourable trade conditions with the EU and MENA countries.
Ukraine has experienced a significant decline in lamb production, with a loss of more than two-thirds since 2014. The production level has decreased from 12.6-14.9 thousand tonnes to 4.5 thousand tonnes in 2023, representing a mere 31% of the baseline. This is an indication of a structural breakdown within the sector. While the global market is showing steady growth, Ukraine is experiencing a decline, which means a loss of market share and a decrease in competitiveness.
After several years of decline, lamb consumption in Ukraine is showing steady growth. While the figure stood at 14.4 thousand tonnes in 2014, there was a sharp decline to 5.3 thousand tonnes in 2022, indicating a crisis stage in the market. The figure then dropped to 4.4 thousand tonnes in 2023, before recovering slightly to 4.5 thousand tonnes in 2024.
The forecast for the period between 2024 and 2033 shows positive trends, with consumption projected to increase to 5.5 thousand tonnes. This confirms stabilisation of demand, with a CAGR of +1.9%, suggesting an increase in the population’s purchasing power and a recovery in lamb consumption in Ukraine.
In 2023, the cost of Ukrainian lamb was $5,111 per tonne, which is $611 less than the global average price ($5,722). By 2024, this gap had narrowed to just $131, making Ukrainian products more competitive on the global market.
Ukraine’s lamb production market has significant untapped potential that can be realised with comprehensive support, effective investment attraction and infrastructure development. The industry has the potential to be transformed into a strategically important area of Ukrainian agricultural exports able to compete globally.
Should you require further information on the lamb market and its prospects, please refer to our report.
The agricultural industry has always held a special place in the life of Ukraine. We highly appreciate the efforts of agricultural enterprises and are happy to celebrate our joint achievements.
BDO in Ukraine has a specialised agricultural group that provides comprehensive support to agribusinesses, taking into account all the challenges caused by the military invasion and the post-effects of the pandemic. A team of over 40 seasoned professionals is performing an in-depth research within the agricultural sector, in particular, in particular, within the lamb market, assessing the developmental prospects and identifying the export opportunities. We maintain consistent communication with our clients, providing them with effective solutions for business development, process optimisation and market entry. Please, contact us — we will be glad to assist your business on the path to growth and stability.
*This publication contains general information and does not constitute professional advice or service. You should consult a qualified professional advisor before making any decision or taking any action that may affect your finances or business. Please contact BDO in Ukraine for further advice and support.
As of 2024, lamb production in Ukraine is a relatively minor component of the meat industry, lagging significantly behind pork and chicken in terms of both volume and growth rates. The lamb sector currently accounts for less than 1% of the country’s total meat production. However, there is also a positive trend in the development of niche farms that are focused on exports and organic products. These farms use intensive animal husbandry technologies and genetic material improvement.
Infrastructure and investment
Infrastructure constraints remain a significant barrier to the development of the lamb market in Ukraine. The industry is facing challenges due to a shortage of modern slaughterhouses that meet international standards and a limited number of enterprises capable of performing the full processing cycle. Specialised sheep farms are few and far between, and those that do exist operate in isolation, not integrated into a single supply chain. However, despite these difficulties, new opportunities are emerging due to investments in vertical integration, i.e. the establishment of enterprises that encompass all stages of production, from cultivation to export sales. Notably, there has been a surge in interest from Gulf countries in Ukrainian halal lamb, which presents a substantial opportunity for export expansion.
Demand in foreign markets and development prospects
There is a growing demand for lamb in foreign markets, particularly in the Middle East, including the UAE, Saudi Arabia and Qatar. These countries are seeking reliable suppliers of high-quality halal lamb. China represents a potentially lucrative market, but one which is also somewhat challenging to navigate due to the presence of both veterinary and customs barriers. The European Union is open to Ukrainian products, but requires compliance with high quality standards, certification and traceability of the production chain. The key benefit of Ukrainian lamb is its environmental sustainability. It is produced without the use of growth hormones, which enhances its appeal to premium consumers.The industry’s development prospects include expanding its export potential, certifying production to international standards, forming farmers’ co-operatives and attracting investment to create integrated enterprises. Ukraine has the potential to become a regional exporter of lamb due to its favourable trade conditions with the EU and MENA countries.
Growth rate of production volumes
Ukraine has experienced a significant decline in lamb production, with a loss of more than two-thirds since 2014. The production level has decreased from 12.6-14.9 thousand tonnes to 4.5 thousand tonnes in 2023, representing a mere 31% of the baseline. This is an indication of a structural breakdown within the sector. While the global market is showing steady growth, Ukraine is experiencing a decline, which means a loss of market share and a decrease in competitiveness.
Dynamics of annual consumption in Ukraine
After several years of decline, lamb consumption in Ukraine is showing steady growth. While the figure stood at 14.4 thousand tonnes in 2014, there was a sharp decline to 5.3 thousand tonnes in 2022, indicating a crisis stage in the market. The figure then dropped to 4.4 thousand tonnes in 2023, before recovering slightly to 4.5 thousand tonnes in 2024.The forecast for the period between 2024 and 2033 shows positive trends, with consumption projected to increase to 5.5 thousand tonnes. This confirms stabilisation of demand, with a CAGR of +1.9%, suggesting an increase in the population’s purchasing power and a recovery in lamb consumption in Ukraine.
Cost of production in the Ukrainian and global markets
In 2023, the cost of Ukrainian lamb was $5,111 per tonne, which is $611 less than the global average price ($5,722). By 2024, this gap had narrowed to just $131, making Ukrainian products more competitive on the global market.Ukraine’s lamb production market has significant untapped potential that can be realised with comprehensive support, effective investment attraction and infrastructure development. The industry has the potential to be transformed into a strategically important area of Ukrainian agricultural exports able to compete globally.
Should you require further information on the lamb market and its prospects, please refer to our report.
The agricultural industry has always held a special place in the life of Ukraine. We highly appreciate the efforts of agricultural enterprises and are happy to celebrate our joint achievements.
BDO in Ukraine has a specialised agricultural group that provides comprehensive support to agribusinesses, taking into account all the challenges caused by the military invasion and the post-effects of the pandemic. A team of over 40 seasoned professionals is performing an in-depth research within the agricultural sector, in particular, in particular, within the lamb market, assessing the developmental prospects and identifying the export opportunities. We maintain consistent communication with our clients, providing them with effective solutions for business development, process optimisation and market entry. Please, contact us — we will be glad to assist your business on the path to growth and stability.
*This publication contains general information and does not constitute professional advice or service. You should consult a qualified professional advisor before making any decision or taking any action that may affect your finances or business. Please contact BDO in Ukraine for further advice and support.
