January 28, 2011

Ukraine's poultry prices to climb up to 14%

Ukrainian Poultry Breeders Union Association projects a 7-14% rise in poultry selling prices for Q1 tо UAH16/kg (US$2.02).

"A price should be at least UAH16/kg (US$2.02), so that the plant has 5-7% of profitability," Association's Director Oleksandr Bakumenko said.

Market participants note that in January a selling price for poultry meat threefold dropped and now it is UAH14-15/kg (US$1.77-$1.89), which is less than the prime cost.

"All components of the prime cost rose, forage, gas, fuel. If enterprises continue to operate at a loss, the production volumes will reduce," Bakumenko explained.

According to him, reduction of selling prices for poultry meat is caused by the low purchase power of the population.