Pork prices jump in Ukraine
"An increase in the purchase price of pigs also began in late March. Initially, the rise was smooth enough, but over time it became more rapid. As of 16 April, the purchase price of a pig (live weight) has risen to UAH24-UAH28 (US$2.02-$2.35) per kg and, in the northern regions of Ukraine, pigs are being purchased at UAH29 (US$2.44) per kg," said the Agribusiness Club in a statement.
Prices for other types of meat have hardly altered, according to the association, with only a slight increase of 0.5-2.0% seen so far. The retail price of beef is about UAH42.50-UAH43.50 (US$3.57-$3.66) per kg, and for chicken the price is about UAH22-UAH23 (US$1.85-$1.93) per kg. However, the association does not exclude the possibility that prices for beef and poultry may also rise soon.
"The rise in pork prices is influenced by many factors. One of the reasons was the reduction of pork imports, given the rise in the exchange rate of dollar against Ukraine’s currency. Meat processing plants previously worked with cheap imported raw materials, and are now forced to buy domestic rather than imported pork," said Alina Zharko, an expert from the Agribusiness Club.
"A growth in demand, influenced by preparation for the Easter holidays, also had an impact on prices. But this year Ukrainians will save on their Easter baskets, so there is unlikely to be any significant growth in meat consumption during this period. After the holidays, pork prices may stabilise, and if the exchange rate of Ukraine’s currency, the hryvnia, increases, they may even decrease," added Zharko.
Experts also warn that the rise in pork prices may result in an increase in social tension as the average salary in Ukraine currently stands at about UAH2,500 (US$210) and many Ukraine citizens cannot afford to buy pork in sufficient quantities at present.
At the same time, retailers claim there are no real reasons for such a jump in prices, blaming farmers for speculating. "Ukrainian farmers are using the temporary shortage in supply on the domestic market to speculatively increase prices for pork products, bringing them closer to the levels of European countries," said Ivan Xherbak, general director of Ukrainian retailer Astra Story.
