Business news from Ukraine

Business news from Ukraine

Largest buyers of Ukrainian frozen cattle meat Azerbaijan, China and Uzbekistan

In the first three quarters of 2024, Ukraine exported 12.6 thousand tons of frozen cattle meat, which is 20.3% less than in the same period last year.
This is evidenced by the data of the State Customs Service.
Revenue from exports of these products decreased by 18.9% compared to January-September 2023 – to $50.9 million.
Azerbaijan (37%), China (27.8%) and Uzbekistan (9.7%) bought the most Ukrainian frozen cattle meat during the first nine months of 2024.

Source: https://agrotimes.ua/tvarinnitstvo/azerbajdzhan-kupuye-najbilshe-ukrayinskogo-morozhenogo-myasa-vrh-%ef%bf%bc%ef%bf%bc/

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Association of Meat Industry on catastrophic situation in meat and pig industry and ASF vaccine prevention

Today we are going through the most difficult times in the history of Ukraine’s independence. As a result of the war, many sectors of the economy are operating at minimal profitability or even at a loss, and suffer financial losses every day due to logistical and personnel problems, enemy attacks on energy infrastructure, and mining of farmland. However, there are industries that could take advantage of the global situation and make a real breakthrough and support Ukraine’s economy during the war. Among these industries is the Ukrainian meat industry.

Back in 2014, the war began with the massive introduction of African swine fever (ASF) from the border areas of Luhansk, Donetsk, and then Chernihiv regions – with pig corpses along the border rivers and with the massive migration of infected wild boar to the border areas. Until February 2022, the Veterinary Service somehow managed, with varying success, to contain the unprecedented onslaught of ASF cross-border spread in the world: even in the face of gross violations of biosafety standards and illegal trade in pigs infected with ASF due to the lack of compensation to farmers affected by ASF. But not now, when Russia can bomb Ukraine with viruses and its state agro-terrorism against the backdrop of nuclear threats from it no longer seems so significant: we are on the verge of collapse of the meat industry and pig production in Ukraine.

The losses of the Ukrainian pig industry from ASF in 2024 may amount to 50% of the pig population a year earlier.

The history of pig breeding clearly shows that no epizootic emergency has ever been brought under control without strict quarantine measures, which were sooner or later mitigated by the development of appropriate vaccines.

For more than 100 years, humanity has not been able to develop a vaccine against ASF due to the special properties of its pathogen: in particular, because its most dangerous structures are not on the surface but in various internal layers of viral particles – virions. Only at the cost of great intellectual efforts, enhanced by artificial intelligence, and enormous material and technical investments, by 2020 Europeans, together with the Americans, managed to develop about a dozen recombinant candidate vaccine strains. And already in 2022, based on no more than three of them, the Americans, together with the Vietnamese and Japanese, developed the world’s first biotechnology facilities for the production of commercial vaccines against ASF. The safety of these vaccines and their ability to stop ASF outbreaks in Vietnam, Indonesia, and the Philippines have been proven in about one million pigs. Countries in Central America, Africa, China, and Ukraine have expressed interest in these vaccines. Their effectiveness is being studied by the European Union: in 2024, registration trials began in Romania, where the ASF situation is much calmer than in Ukraine, and EU scientists received grants to study the dynamics of the epizootic process in Asian countries. In the EU, the ASF control system makes it easy to contain the disease at the level of sporadic cases in wild boar populations.

The Ukrainian Meat Industry Association has always paid special attention to the possibility of overcoming the main enemy of the meat industry and pig breeding – ASF. Therefore, in 2023, we supported the initiative of the Center for Animal Production Efficiency LLC to conduct registration studies of the first commercial vaccine against ASF and, in case of positive results, to apply through the relevant state authorities for its accelerated registration in Ukraine. On April 07, 2023, we first made a proposal at the meeting of the Working Group on Meat Industry Development of the Ministry of Agrarian Policy to study the AVAC ASF Live vaccine against ASF (agenda attached).

In its October 2023 Memorandum, the World Organization for Animal Health (OIE) summarized the requirements for the use of ASF vaccines: it clearly indicates a) the high risk of using low-quality or inappropriate vaccines, b) the requirement to use ASF vaccination as part of the existing anti-epizootic measures and c) the third key requirement of the WHO, which was formulated on the basis of the study of scientific data, including reports from Southeast Asia, and addressed to manufacturers of ASF vaccines: they should familiarize themselves with and, upon agreement, adopt the criteria of the WHO 2023 draft standard as a basis for assessing their quality (https://www. woah.org/app/uploads/2023/10/a-bsc-report-sept-2023-1.pdf). According to the dossier materials provided by the manufacturer to the Center for Animal Production Efficiency LLC, the AVAC ASF Live vaccine meets the WHO regulatory requirements, but the question remains whether and under what conditions it will be able to protect the pig industry from field variants of the pathogen in the Ukrainian ASF nosoarea. This can only be done through registration trials.

After the release of the October Memorandum of the WHO, on November 02, 2023, the Ukrainian Meat Industry Association once again submitted a proposal to the Working Group on the Development of the Meat Industry of the Ministry of Agrarian Policy on the urgent need for the industry to study the possibility of vaccine prevention of ASF in Ukraine and progress with vaccine prevention of ASF in the world (protocol attached).

The Meat Industry Association also asked the OIE for methodological and legal assistance in the implementation of ASF vaccination in Ukraine in accordance with OIE requirements, which immediately received a positive response from the OIE leadership, and the Center for Animal Production Efficiency LLC began active communication with the OIE and its recommended scientific institutes and OIE scientists.

But the leadership of the Ukrainian Pig Association (UPA) decided in advance, in 2023, that this vaccine was not a vaccine at all, but a worthless candidate, and in order to block these trials, they resorted to their own interpretation of the data of scientific works and WHO decisions.

It would be funny, but given the current situation in the Ukrainian pig industry, it is sad to see that the authors from the ASU use their own conclusions on experimental results that have been very carefully analyzed by the editors of scientific peer-reviewed publications as arguments – precisely in terms of the validity of the conclusions.

The ASU’s interpretation of the October 2023 WHO Memorandum looks strange: the authors’ bias is evident in their translation of the first provision of the Memorandum on “The risks of using poor quality or non-compliant vaccines” as “vaccines with an unconfirmed status of safety and efficacy.” Given this potential for artistic representation, for some reason the authors of the ACS completely ignored the WHO provisions on vaccination as an integral part of existing anti-epizootic measures (“ASF vaccination should not be used as a stand-alone disease control measure”), and there is no need to talk about the WHO draft standard for ASF vaccine prevention – the ACS does not want to know about it.

But for some reason, the ACA decided to believe that Vietnamese vaccines against ASF registered in three countries do not currently have a confirmed status of a safe product and “truthfully” claim that these commercial products have the status of a “candidate vaccine against ASF” A vaccine cannot be considered a “candidate vaccine” if it has already been registered and recognized as a vaccine. In 2023, Vietnam provided Ukraine with official confirmation that the vaccines were properly registered (translation of the confirmation is attached). Furthermore, the ASU dared to interpret the results of a scientific scopus publication on the 2021 Vietnamese field isolate ASFV-GUS-Vietnam as derived from a mutation of the ASFV-G-ΔMGF vaccine strain… The article raises the issue of a thorough study of its impact on the evolution of the field virus in different ASF nosoareas, which is critically important for the implementation of ASF vaccine prevention, but there is not even a hint of the genetic fantasies of the ASF authors.

Even more surprising is the ASU authors’ interpretation of the scopus publication of a respected European scientific team on the genetic stability tests of the ASFV-G-ΔMGF vaccine strain. The ASU leadership makes a very far-sighted conclusion that the vaccine virus is capable of infecting, which means it is restoring virulence, quote: “Studies (Evaluation of African swine fever vaccine candidate ASFV-G-ΔMGF in conversion to virulence study at https://pubmed.ncbi.nlm.nih.gov/37248243/) showing that the ASFV-G-ΔMGF vaccine virus (used to formulate AVAC ASF Live) regains virulence (ability to infect).” What a deep understanding of scientific issues! Unfortunately, European scientists did not have the courage to interpret the results of serial passaging of the vaccine strain in this way. Their analytical abilities were only enough to make a cautious statement that “The genomic changes did not affect the recombination site, but included deletions and reorganizations in the terminal regions of the genome.” That is, they pointed to the stability of the genome and the absence of critical reversion of the vaccine strain. However, this does not negate the need for research aimed at, quote: “on the long-term effects and transmission characteristics before a thorough benefit-risk analysis can be conducted.” This is indeed a very important and scientifically balanced recommendation: and, unfortunately, not only for ASF vaccines, but also for all other viral vaccines used in pig production. After all, to the knowledge of the authors from the ASU, many of these commercial vaccines do have genomic changes, and it is in the recombination sites. This causes constant tension in our pig farms with circovirus and parvo virus infections, PRRS, Aujeszky’s disease… But the ASU management professes the theory that this can only happen with the AVACASFLive vaccine, because they have accurately established that “it restores virulence (the ability to infect).”

Well, it’s pointless to continue to analyze the “anti-vaccine efforts” of the ASU leadership, which is “concerned about false information and data manipulation” in the scientific publications mentioned above. We have translated these and the following “arguments” of the USBA into English and sent them, along with our arguments and explanations of the current situation with ASF in Ukraine, to the WHO and to the interested unions of pig producers and processors in the EU as part of the pan-European coalition to eradicate ASF in Ukraine and Europe, which is being formed on our initiative and with our participation.

Few people know now, but a similar situation occurred in the 1950s and 1960s with the introduction of a vaccine against classical swine fever developed in Kharkiv under the leadership of Professor I.I. Kulesko. The resistance of the “public” was similar.

As of October 2024, in Ukraine, after a year of talk and outright misinformation about ASF vaccine prevention, up to 50% of pigs in the industrial sector and in households have been lost. A significant number of pigs infected with ASF have been illegally sold for more than a year, causing an unprecedented wave of ASF in Ukraine. Losses to Ukraine’s economy reach €1 billion, as opposed to the growth and development of the industry, which is capable of providing €6 to €12 billion in added value annually.

These are the consequences of disinformation by the ASU leadership – the loss of €1 billion to the Ukrainian economy and the industry’s potential for growth.

It is time to move on from verbal battles and get down to business – to save the pig industry in Ukraine and analyze the pros and cons of ASF vaccine prevention based on our own results – and in the current conditions of its Ukrainian noso-area. No one will do this for us, and it is a pity if some pig producers still do not understand this. And this can only be done within the framework of registration trials, appropriately – according to the program kindly prepared for us by the WHO, in the edition of the European Veterinary Union.

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Meat prices increased by 3.3% – Pig Producers of Ukraine Association

Chilled meat of all types continued to rise in price by an average of 1.9-3.3% in national retail chains in early fall, according to the Pig Producers of Ukraine (PPU).
“In September, there was a gradual increase in prices for chicken and beef, so the average price of these types of meat added 2% and 3.3% to the August figure. Although retail prices for pork changed direction during the month, the average price per kilogram for the analyzed period also showed an increase of 1.9% compared to August to 203.5 UAH/kg,” the analysts said.
At the same time, according to them, it is 2.1% more affordable than in September last year.
Experts noted that in September, unlike in previous periods, the thigh part went up by 4.6%, or almost 7.5 UAH/kg compared to August. The increase in prices for pork tenderloin did not exceed the average mark, but due to the higher price of this semi-finished product, it was more noticeable for the wallets of Ukrainian consumers (+4.8 UAH/kg). The rise in price of other pork products was limited to 3-4 UAH/kg.
Another difference in September was the inconsistency of changes in pork prices in purchases and on supermarket shelves.
“If in August the direction of movement of quotations in the pork market corresponded to the rise in price of slaughterhouse pigs, in early autumn the situation changed. Thus, in the first half of September, live pork prices dropped significantly, while retail prices continued to grow by inertia. At the same time, the reaction of store price tags to the positive correction of purchase prices was more rapid. While the average price of pork in supermarkets was 1.9% higher than in August, pig farms received 4.4% less per kilogram of live weight sold than in the previous month,” the industry association summarized.

Kyiv-based Myasnyi Rai chain of stores is up for sale

The Myasniy Rai chain of stores, known for its high-quality meat products, announces the sale of its assets and trademark. The offer opens up new opportunities for investors and entrepreneurs seeking to develop their business in the retail sector.

The Myasniy Rai chain was founded in 2017 and quickly gained the trust of customers due to its high quality products and focus on local suppliers. The first store was opened on Shevchenko Boulevard, after which the chain was constantly expanding, opening new outlets. During 2018-2022, 8 stores were opened. The total investment in business development and support amounted to more than $700,000. Now Myasnyi Rai includes three stores, a production shop, a coffee shop and an online store providing a wide range of products for customers.

Key assets:

  1. A store at 32a Olesya Honchara Street, opened in 2018. Area: 130 m²; Assortment: fresh meat, sausages, frozen food, spices, sauces; Special features: focus on quality products and local suppliers;
  2. Store at 2 Generala Almazova Street, opened in 2022. Area: 109 m² Assortment: similar to the store on Gonchar Street
  3. The store at 24 Serhiy Danchenko Street, opened in 2022. Area: 95 м². Assortment: similar to the previous stores
  4. The production shop opened in March 2020. Area: 211 м². Capacity: up to 12,000 kg of frozen products per month. Products: sausages, smoked meats, salads (sold in the retail chain).
  5. A coffee shop on Honchar Street, opened in July 2020. Area: 70 м². Assortment: hot drinks, pastries, desserts, snacks. Special features: a cozy place for meetings and relaxation, located in the business center of Kyiv.
  6. The online store has been open since 2018. Assortment: fresh meat, sausages, frozen food, spices Services: delivery in Kyiv, convenient online ordering system.

Advantages and prospects

The Myasnyi Rai chain offers a unique opportunity for investors to enter the food market with a ready-made, well-established business.

Main advantages:

  • Registered trademark “Meat Paradise”, which ensures brand recognition.
  • High quality products and a positive reputation among local residents and restaurants.
  • Developed marketing strategy with an active social media presence and loyalty programs.
  • Potential for further expansion in both retail and manufacturing.

This offer for sale is an ideal option for entrepreneurs who want to invest in a stable and profitable business with broad development prospects. For more information, please call +380 67 230 00 17.

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Grain – Pigs – Meat: value chain

On June 12, Kyiv hosted the business forum “Grain. Pigs. Meat – 2024”, which brought together representatives of agribusiness, processing, supply, finance and investment, government agencies, experts and bloggers. We are grateful to the Armed Forces of Ukraine for this opportunity!  

We are grateful to the guests, participants, partners and sponsors of the Forum from Kyiv, Chernihiv, Odesa, Mykolaiv, Lviv, Kharkiv and other cities and towns of Ukraine who attended the business forum “Grain. Pigs. Meat – 2024” and joined the discussion of crucial issues that help businesses move from confrontation to cooperation, provide new opportunities for scaling and development of entire sectors of the Ukrainian economy!

The Forum highlighted the issues that hinder the development of the Grain – Pigs – Meat value chain, held active discussions, proposed solutions and provided effective tools.

Forum participants learned about:
– The importance of developing industries that create added value in Ukraine’s economy in times of war, with raw material exports blocked, expensive logistics, and a cheap price for the raw material itself and its minimal added value
– The possibility of replacing grain exports with exports of meat and meat products, which are high value-added goods.
– The state and prospects of the pig and meat industry in Ukraine during and after the war.
– The next stages of implementation of the New Pig Breeding of Ukraine program, which envisages a fourfold increase in the number of pigs, from 6 to 12 billion euros of added value.
– Possibility of eradicating ASF in Ukraine through vaccine prevention, lifting the stamping out in industrial pig production and unblocking pork exports.
– Establishment of an international consortium to support ASF control measures in Ukraine and Europe.
– Adaptation of pig production in Ukraine to a possible decline in pig prices due to overproduction in the absence of pork exports.
– Investment opportunities for the meat industry, pig production and farmers.
– Newest and digital technologies for pig production and meat processing.
– The Family Pig Farms social project, which will help war veterans start a successful pig farming business.
– Opportunities to obtain additional funding, grants, and investment.
– Training of highly qualified personnel for meat industry enterprises.
– Implementation of a mechanism for cooperation between producers and processors to protect profitability throughout the chain.

We call for cooperation for the development of Ukraine and believe in Ukrainians who, even in the most difficult times, do their best to rebuild our country. Only together we can make the Ukrainian agro-industrial complex stronger, more sustainable and competitive in the global market!

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Ukraine bans import of meat from Thailand

The Eastern Interregional Main Directorate of the State Service of Ukraine for Food Safety and Consumer Protection has imposed restrictions on the import of meat products from Thailand to Ukraine due to the registration of African swine fever (ASF) in that country, the agency’s press service reports.

According to an order of the Chief State Veterinary Inspector of Ukraine dated October 13, 2023, the ban applies to the import of animals belonging to the families of pigs, tayas and tapirs, as well as genetic material and products from animals of the listed families.

At the same time, the ban does not apply to products that have been processed by a method that guarantees the destruction of the causative agent of this disease in accordance with the requirements for the import (shipment) into the customs territory of Ukraine of food products of animal origin, feed, hay, straw, as well as by-products of animal origin and products of their processing, processing, approved by Order of the Ministry of Agrarian Policy and Food No. 553 of November 16, 2018.

African swine fever (Montgomery’s disease) is a contagious viral disease of domestic and wild pigs, first recorded in 1903 in South Africa. It cannot be treated or vaccinated. The spread of the virus can only be stopped by quarantine measures.

ASF is not dangerous for humans, but it causes economic losses, as all animals in the infected area must be destroyed.

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