Industrial pig farming of Ukraine may decrease – Association of Ukrainian Pig Producers

The rise in price of fodder crops amid seasonal weakening of purchase prices caused a wave of doubts, which forces industrial pig farmers in Ukraine to revise plans for further development.

This was reported by the press service of the Ukrainian Association of Pig Producers.

According to the report, the reason for the increase in pessimistic sentiment among pork producers is the upward dynamics of prices in the agricultural market during September-October. The rise in price on feed significantly affects the cost of raising pigs through the prevailing share of feeding costs in its structure - from 60% to almost 80%.

According to the head of the analytical department of the Association of Pig Farmers of Ukraine, Alexandra Bondarskaya, like any branch of the economy, pig farming has a cyclical nature of development with recessions and rises in profitability. However, now the situation is slightly different. Thus, only recently the industrial pig farming in Ukraine began to show signals of gradual recovery: the number of livestock restored 3% of animals lost in industry last year, a decrease in the ratio of raising and slaughtering pigs leaves a conditional gap for more reproduction. Such a radical change in market conditions can lead to an even more active exit of producers from the region, which eliminates all recent achievements.

"This, accordingly, will lead to another reduction in the industrial number of pigs in the country, which will subsequently be reflected in the reduction in the industrial supply of the corresponding type of meat and its rise in price not only in the purchase, but also in the final prices on the shelves of retail chains. The shortage of the domestic pork market will try to compensate for the purchase of meat raw materials abroad, which will negatively affect the country's level of self-sufficiency in pork. And given the significant weakening of pork prices in the world, which is observed this year, there are enough willing external pork suppliers from both European countries and America, "summed up the head of the analytical department of the Association of Pig Farmers of Ukraine, Alexandra Bondarskaya.

Recall that Belarus imposed a temporary ban on the supply of pork from the Ivano-Frankivsk region of Ukraine due to African swine fever (ASF).

SOURCE: LATIFUNDIST.COM