The pork market in ukraine to 2017 : expert opinions

Export of the Ukrainian pork decreased in 2016 in ten times.

The country lost a lot of market channels, and therefore producers should look for new exits to keep profitability of their businesses. Experts of the market Artur Loza and Valeria Shaymukhametova reported about it.

Commenting on a situation, the head of association "Breeders of Ukraine" Artur Loza, noted that the Ukrainian domestic market works by the same market rules, as all markets of the world. And therefore price policy will depend this year on the total market. It concerns all producers of pork, irrespective of production volumes.

And the analyst of "Fenix Agro" Valeria Shaymukhametova claims that in comparison with 2015 the situation in the market of pork changed a lot. And first of all it is connected with decreasing in exports of the Ukrainian pork in ten times, and also a big number of outbreaks of the african swine fever (ASF).

And behind all this, according to Valeria Shaymukhametova, there is small plus - it is increasing of minimum salary to 3200 UAH.

"There is a chance that people will start to buy more meat. After all people will have such opportunity. But really to make conclusion as far as it will influence on prices and market it will be possible later. Besides a question of devaluation - not the last in this scheme", - the expert noted.

But nevertheless, from their words, export availability will become the main factor in market grouping of pork and meat price this year.

"If in 2015 large producers were oriented to export, it means that the Ukrainian pork was on sale also in Moldova, Russia, the Crimea and other countries, then in 2016 these markets closed. Export of the Ukrainian pork decreased in ten times - Ukraine exported only 3000 tons of pork. So large producers are forced to sell meat in the domestic market. And it doesn't contribute to development of small-scale subsidiary farms in any way. Upon - there is a decrease in profitability everywhere", - Valeria noted.

Separately Valeria marked ASF which in 2016 became a big problem for producers of pork.

"In Ukraine, in 2016 there were about 80 of ASF outbreaks – before the producers closed the markets, of course this was reflected in the price. One can only hope that this year, ASF will be able to overcome," - said the expert.

That`s why it`s actually clear, according to Valerie Shaymukhametova, why small farms reduce production. This is due not only to reduced exports and forced sale of Ukrainian pork on the domestic market and devaluation in Ukraine. "Expensive food and energy costs, can't to compete on performance with large pig-breeding farms of the population. Therefore, small farms reduce their work. If this year Ukraine will be able to regain export markets, the small private sector will again increase production," - said the expert.

At the same time the head of association "The pig producers of Ukraine" Arthur Vine commenting on the situation, said that to find a way for all producers, because in the conditions of market relations can not be fixed prices for pork.

. «Fixed price on the products –it`s utopia. To remedy the situation and to protect themselves, manufacturers need to unite.: making cooperative, development of schemes of livestock rearing, integration. The last one means cooperation with large pig farms, which may, for example, pass the pigs for growing populations, and so on unification and search of new mechanisms of work is the "key" to success and achieve the desired income, " said Arthur Vine. Commented professionals and a seasonal rise in prices for meat products. According to them, this is the predicted phenomenon depends on the demand in the domestic market. "Before the New year the price of meat increased. Processors purchased from large pig farms products at the price of 35 UAH per kilogram. Now, after the holidays, the price dropped to the limits 31 of the hryvnia. That is, the demand increased prices. But it was and always will be", - said the analyst "Phoenix agro" Valeria Shaymukhametova..

And both experts agree that prices in the pig market of Ukraine in 2017 will depend on exports, and on ASF.

Informational source -