February 22, 2011

Ukraine's State Reserve to secure meat to stabilise price

Ukraine's State Reserve Agency intends to acquire meat for price stabilisation at the market, stated the Ministry of Agrarian Policy and Food Supplies.

The Reserve Agency studied the issue of procurement of pork and poultry meat at a staff meeting at the Agrarian Policy Ministry on February 18.

In particular, Agrarian Policy and Food Supplies Minister Mykola Prysiazhniuk said at the meeting that the State Reserve had to procure at least 10,000 tonnes of pork in slaughtering weight count UAH13 (US$1.63) or UAH14 (US$1.76) a kilo.

He noted that they had already concluded 32 agreements with processing enterprises but did not mention the volume of meat contracted.

As regards poultry meat the ministry did not disclose the project volumes of procurement.

Moreover, at the staff meeting they discussed issues of cheapening mineral fertilisers and fuel and lubricants for the spring sowing campaign, for building wholesale markets of agricultural products, and also problem issues of forward procurement this year for partial financing of seeds and sales of products at negotiated price.

Concerning forward procurements, Prysiazhniuk says UAH5 billion (US$628.69 million) has been allocated for these needs this year, and this is the way the state intends to incite volumes of production of agricultural products.

Earlier, the Ministry of Agrarian Policy and Food Supplies predicts meat production to grow 2.4% or 3.4% (0.05 million-0.07 million tonnes) to 2.1 million-2.12 million tonnes with curtailing of meat imports in 2011.