Purchase prices for pork in Ukraine fell below the psychological mark of UAH 50 per kilogram

The decrease in prices for the carcasses of pigs in slaughter conditions continued in the third decade of July and, as evidenced by the monitoring results of the "Swinemakers of Ukraine" association, the majority of commodity lots were purchased at UAH 45-49 per kilogram.

At the same time, as noted by the experts, the heterogeneity of the demand and supply of pork in different regions of the country caused a more significant price discrepancy. Yes, in the western regions slightly higher prices were recorded than in the rest. The weighted average market mark stopped at the level of UAH 48.5 per kilogram, that is, 6.7% lower than last week.

It is worth noting that the expectations of the operators of the meat processing industry regarding further price dynamics are currently divided: some believe that prices will remain at the achieved level, while others are determined to restore them. At the same time, the procurers are unanimous in the fact that the price reduction mostly does not improve the situation for either the producer or the processor, because it does not stimulate trade activity.

It was previously reported that pork prices fell 10.1% in June compared to May due to tighter power outage schedules. The average purchase price of pork in June was UAH 53.2 including VAT, which is UAH 6 per kilogram less than in May. As noted by the experts of the Association of Pig Breeders of Ukraine, power outages affected not only the final sale, but also the procurement activity of meat processing plants and slaughterhouses. In addition, the market activity was affected by more active mobilization, which forced enterprises to change their work mode and partially reduced the flow of consumers.

But, according to reports, despite the difficulties, industrial pork production in Ukraine has increased. In the five months of 2024, the estimated industrial supply of pork by slaughter weight amounted to about 304 thousand tons, which is 9% more than in the same period of 2023. Experts expect that seasonal factors may provide support to purchase prices in the near future. In addition, imports of pork and lard are decreasing, while exports outside Ukraine are increasing. It is worth adding that pig farming, despite a certain revival, is not becoming the most attractive industry for investments. It is predicted that according to the results of 2024, the profitability of pork production will decrease to UAH 0.35 per kilogram against UAH 0.64 in 2023. The main reason for its decrease will be a decrease in purchase prices for pork in the current year - by 29% against the average for 2023.