September 27, 2010

Ukraine's local meat prices hit 10 years' peak

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 UAH3.5 (US$0.44) per kilo depending on the region and type of meat, says Yelizaveta Sviatkivskaya, executive director of the association.

This growth, she said, is due primarily 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.

Beef has got most noticeably expensive, which is associated with a reduction in livestock and its offer for slaughter, as well as the lack of competition from importers.

According to the Agrarian Business Club, on September 21, bulls of over 400 kg cost UAH14.5-15 (US$1.83-$1.89)/kg, while at the beginning of September the prices did not exceed UAH13 (US$1.64)/kg. Top-class beef prices by the said date rose to UAH47 (US$5.93)/kg from UAH42 (US$5.3)/kg (wholesale price) at the beginning of the month.

Market prices of pork changed less noticeably owing to the import of half-carcasses from Europe at the price of UAH23-24 (US$2.9-$3.03)/kg (category E). Similar Ukrainian pork price is UAH33 (US$4.16)/kg, the expert said.

"Imported raw materials allowed stopping the growth of prices on Ukrainian pork, but increase in production cost will entail both revision of prices and slower growth of pig population," Sviatkivskaya said.

In early September, the UN Food and Agriculture Organization (FAO) reported that meat prices in August on the world markets rose to their highest level in 20 years.