May 10, 2012

The Ukrainian pig farming crisis has been growing as the volume of pork production decreased by 2% to 731.4 thousand tonnes during the first three months of 2012.

There have been parallel decreases by 6% in the total livestock number of pigs. And the trend continues to grow in the second quarter of 2012. At the end of April 2012 the number of pigs in all categories of farms in Ukraine fell by 9.9% compared to the level of the previous year to 7.214 million heads.

The most noticeable decrease has been registered in the number of pigs in the large pork production enterprises - by 11.8% to 3.014 million head. Also, during the second quarter there has been a further increase in the cost price of pork, which rose approximately by 7-10% depending on the region. Thus, taking into account the growth in the first quarter of the year, prices rose by 15-18% compare to the same level of 2011.

Earlier this year the cost of 1 kilogrammes of pork was UAH45 (US$5.6), but now it has reached the mark of UAH70 (US$8.7) per kilogrammes, and it is obvious that this is not the limit. At these prices, many Ukrainians cannot afford to buy pork. According to the head of the analytical department of agency (AAA), Maria Kolesnik, the prices for pork on the national market will not fall.

However, she forecasted that the decrease in the number of livestock will soon stop, and the number of pigs at Ukraine farms will stabilise.