Pork prices in Ukraine to increase
A drop in pork production in the EU because of rising feed prices and the introduction of new rules on the sow keeping that will come into force 1 January 2013, will have a negative impact on the pig market in Ukraine, experts claim.
It is predicted that the price of pork until the beginning of 2014 will grow 10% -15% on average, and possibly more, but the low purchasing power of the population will lead to a significant drop in internal demand.
Elizabeth Svyatkivskaya, Ukraine agricultural market analyst reports: “Ukrainian pork will certainly become more expensive. Currently the low prices restrain import supplies, but now we see that imports are low but the cost of production process increases. Of course, Ukrainian consumers are not willing to pay a lot of money for pork so it will limit the development of the industry.”
Also pig breeders in Ukraine have currently found themselves under intense financial pressure. It is predicted that in the next few years, the manufacturers will face a decline in profitability, which will force them to increase the price. As a result, demand for pork in Ukraine may drop 15%-20%, Russian experts predict.
“Pig farming in the coming years in the EU will have significant changes that will affect many of its neighbours, including a large market such as Ukraine and Russia, with a significant share of the total amount of pork imports from the EU,” reported experts of the Russian agricultural analytical agency, Agroru.
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