How the Corn Harvest Will Affect Egg and Dairy Prices in Ukraine

The cost of eggs and dairy products in Ukraine in the coming months will largely depend on this year’s corn harvest. This grain crop accounts for up to 70% of the cost of animal feed, so changes in its yield will directly impact the livestock product market.

This is reported by AgroReview

Corn as a Key Factor in Price Formation

The cost of feed, particularly corn, is a primary factor in the pricing of eggs. According to Oleg Pendzin, director of the Economic Discussion Club, approximately 70% of the cost of a single egg comes from feed expenses. Increases or decreases in grain prices are immediately reflected in the final prices on store shelves.

“Egg prices are directly dependent on the cost of the grain group. If the corn harvest is successful, there is a chance for stable or even lower feed prices, and thus for the eggs themselves,” Pendzin explained.

Forecasts for Autumn Prices and the Role of the Harvest

Economists note that making accurate forecasts regarding the price of eggs and dairy products in the autumn is currently difficult. At the same time, there are reasons to hope for a good corn harvest this year. Under such conditions, the cost of feed will decrease, allowing farmers to reduce their expenses on raising poultry and cattle. This, in turn, could contribute to lower prices for eggs and dairy products.

Currently, dairy products remain relatively affordable for Ukrainian consumers, which is particularly relevant during periods of high inflation. However, the market situation remains uncertain, as the main risk factor is the volume of harvested grains. If the harvest turns out to be lower than expected, this could lead to an increase in the cost of basic food products. Consumers should keep an eye on news regarding the harvest and the dynamics of grain prices, as these indicators will determine the pricing policy in the egg and dairy markets in the near future.