October 4, 2010

Ukrainian meat prices may surge 10% by end of 2010

Meat products in Ukraine will grow in price by 5-10% by the end of this year, Chairman of the Ukrmyaso Ukrainian National Association of Meat Producers Volodymyr Popov has said.

"The main reason for this is a rise in prices for raw materials. For example, the price of beef for industrial processing in September rose to a record level over many years," Popov said.

In his opinion, the possible introduction by the government of restrictions on grain exports will not affect the pricing policy of meat plants, as the main reason for a rise in prices for sausages is a shortage of raw meat on the domestic market.

In the second half of September, the meat prices in Ukraine reached their highest level over the past 10 years due to a strong rise in the year's feed grain prices, stated the Ukrainian Club of Agrarian Business association.

Thus, in late September, the price of meat increased by UAH3.50 (US$0.44) per kilo depending on the region and type of meat. The growth was primarily due to the growing prices of livestock in live weight, which is associated with the use for fattening of the feed grain purchased at a higher cost than two or three months earlier.