Pork is getting cheaper in Ukraine. Experts named three reasons

Over the past two weeks, Ukraine has seen a decrease in pork prices. So, the analytical department of the Association "Meat Industry" reported the forecast of purchase prices for March 22-28: 39-40 UAH/kg of pigs in live weight.

Over the past two weeks, Ukraine has seen a decrease in pork prices. So, the analytical department of the Association "Meat Industry" reported the forecast of purchase prices for March 22-28: 39-40 UAH/kg of pigs in live weight.

The price of live pigs next week is likely to decrease by 1 UAH/kg, writes agronews.ua. The following factors influence the price reduction:

• Reduction of the tax credit by 6% from 20% to 14% from March 1, 2021, for meat processors who work legally. They often had to compensate for losses due to their own mark-up. Illegal slaughters did not feel any changes and their proposal became more attractive to the "white" market.
• A sharp increase in pork imports by 3.5 times in February 2021 compared to the same period last year.
• The beginning of fasting before Easter and the traditional reduction in meat consumption.

Analyzing prices in retail chains, which over the past two weeks have fallen by an average of 4-6 UAH/kg, we can state that the demand on pork has decreased, and the supply of pork is in excess.

The excess supply of pork in Ukraine can lead to a further decrease in pig price and further hit the profitability of cultivation. The Association "Meat Industry" has intensified work on opening new markets for pork for meat processing enterprises, agreeing on conditions for the Ukrainian pork exports to Asian and African countries.

The consolidation of processors and producers will not only stop the fall in pig prices but will also ensure an increase in pig prices in Ukraine, and then increase the income of pig raising and processing. This happened in Brazil, thanks to exports, not only doubled pig prices, but also increased the number of pigs by 24%.

As reported, in Ukraine, food is rapidly growing in price. So, in February, the increase in prices for processed food products amounted to 7.2% in the annual dimension.

SOURCE: XEPCOH online