Ukrainian egg producer Avangard reported revenue of UAH 390.15 million (US$9.3 million) in the first half of 2026, down fourfold from the same period last year, according to a company filing.
Despite the sharp drop in revenue, the company posted a net profit of UAH 51.59 million (US$1.16 million), compared with a net loss of UAH 74.04 million (US$1.67 million) in the first half of 2025.
The improvement in net profit is primarily attributed to intensifying competition in the Ukrainian egg market in recent years.
"Over the past 2 years, the level of competition in the chicken egg market has increased significantly due to the entry of new players using high-tech equipment and ensuring appropriate biosecurity standards in production, allowing them to supply both the domestic market and the EU market," the company said.
A lack of money
Avangard said it currently has no capital construction plans due to a lack of financing, while modernisation of fixed assets will be carried out only if funds become available. The company said it does not use bank loans and that cash generated from operating activities is sufficient to meet its obligations on time.
In addition, Avangard listed several key challenges affecting its business, including distorted agricultural price parity, weak consumer purchasing power, low egg selling prices and high production costs driven by expensive raw materials, supplies and services.
"There has been a sharp slowdown in the renewal of poultry equipment. Problems in the financial, banking, tax and political spheres do not allow the company to plan its activities over the long term," the company said.
However, it added that "poultry farming and chicken egg production is a promising business due to the continued strong demand for poultry products."
Rising costs across the egg industry
Rising logistics and labour costs are making egg production in Ukraine increasingly expensive, according to Yulia Flerova, CEO of egg producer Yasensvit, who spoke in an interview with local Nashe Ptakhivnytstvo magazine.
Flerova explained that the cost structure for egg production has become more complex, with production costs now increasingly influenced not only by feed and energy prices but also by logistics, biosecurity investments and the availability of skilled workers.
The importance of domestic and export logistics has grown significantly in recent years as producers adapt to new transport routes and higher freight costs.
Flerova's comments come as Ukraine's agricultural exports via the Black Sea have been severely disrupted following the latest escalation of the conflict with Russia, with intensified attacks on merchant vessels and port infrastructure in recent weeks adding to logistics costs and uncertainty for exporters.
