The average price of pork in slaughter weight in Ukraine reached 85.5 hryvnias ($ 2.3) per kg, adding 12.5 hryvnias ($ 0.34) over the past few weeks, due to a consumption hike and a supply shortage, the Ukrainian pig farmers association estimated.
Farmers saw an exceptional demand for animals in slaughter conditions. Meat processors were ready to extend the existing contracts, the organisation said. The price dynamic is fueled by the start of the barbecue season and the need for meat producers to form stocks of raw meat due to a limited import supply.
Ukraine has lost nearly 12% of its pig population during the hostilities. As a result, the domestic market experienced a supply shortage of around 100,000 tonnes of pork last year. Currently, pork prices vary drastically in Ukraine. The average price is now noticeably higher in eastern parts of the country, which suffered heavy destruction as a result of the military conflict.
In the wake of rising prices, Ukrainian pig farmers express growing optimism. A recent opinion poll conducted by the Ukrainian pig farmers association located in territories controlled by Ukraine showed that 42 out of 150 pig farms surveyed, which keep more than 1.5 million pigs, plan to increase their production capacity in 2023. Almost all surveyed farms confirmed some development plans,.
Despite the shortage in the domestic market, Ukrainian pig farmers put some effort into facilitating pork export. Currently, pork is not included in the list of perishable goods by the Ukrainian government. This means that the export batches wait, on average, for a week to pass customs clearance. In light of this, pig farmers abandon export, though sales to foreign customers could secure additional added value, the pig farmers association said. “In order to prevent spoilage of pork products, suppliers provide uninterrupted cooling during the waiting period, which significantly increases the transport costs,” the organisation said. It appealed to the Ukrainian Agricultural Ministry asking to include at least some sausage products in the list of perishable goods eligible for priority border crossing.
The farmers expressed confidence that the positive decision on that matter would greatly help the entire meat industry.