In June 2024, Ukraine increased the number of pigs to 5.2 thousand heads, which is 3.1% more than last year, but 3.4% less than in 2022, the Ukrainian Business Club (UCAB) reported, citing data from the State Statistics Service.
“Due to high purchase prices and cheap feed in 2022 and 2023, the pig industry could recover,” analysts said.
At the same time, they emphasized that in addition to the usual market changes, such as stabilization of grain and oilseed prices, companies must also adapt to the challenges of today. For example, rising energy prices and employee mobilization are forcing farmers to look for innovative ways to reduce costs and increase efficiency.
Experts recalled that in the second half of June 2024, Ukraine recorded the lowest average price in the last two years – UAH 46.3 including VAT per kg of cuttings. The last time such a price was observed at the end of April 2022. This figure was significantly closer to the level of production costs, which excited producers. However, in early June, the price of cuttings rose to 55.1 UAH/kg including VAT.
“There is no single factor that would have a significant impact on this, as this situation is caused by a set of reasons that are atypical for this period of time. First, there has always been a growth trend in the first half of summer, even during the war. This year, power outages and mobilization led to a decrease in demand. Secondly, if before the war imported pork influenced domestic pricing, now it does not. Volumes have dropped to 300-500 tons from 2500-4000 tons. Market changes are caused exclusively by internal factors, as most of the pork on the shelves is Ukrainian,” explained UCAB analyst Maksym Hopka.
Prices for slaughter pigs continued to decline in the second half of May and reached 55-57 UAH/kg, which is 4.5% lower than a week earlier, according to the Pig Producers of Ukraine association.
According to the report, most operators in the live market this week purchased animals in the range of 55-57 UAH/kg, although higher and lower quotes were occasionally found. The latter, in particular, mainly concern animals of high weight categories, the supply of which still puts pressure on the overall price situation.
According to experts, higher prices were observed in the western regions, while in other regions quotations tended to reach 55.5 UAH/kg. At the same time, the weighted average market price was fixed at 55.8 UAH/kg.
The expectations of meat processing representatives regarding further price dynamics differ. Thus, some procurers do not rule out further price weakness, citing sluggish sales and supply that exceeds demand. Other operators state that the volumes available for booking are quite moderate, and the average slaughter weight of animals is lower than usual. Some operators expect faster sales with the return of favorable weather conditions for picnics, the industry association explained.
The average purchase price for pork in April amounted to 62.3 UAH/kg (including VAT), or $1.58 in foreign currency equivalent, which is 1.2%, or 0.75 UAH/kg, higher than in March, but 22.1%, or 17.7 UAH/kg, lower than the same period last year, the Ukrainian Pig Association reported.
“Quotes on the live market failed to maintain a positive direction of movement throughout April. Although at the beginning of the month the positive price dynamics provided a slight positive deviation from the average for April, two weeks before Easter prices fell off the upward trend,” the report says.
Analysts emphasized that the main reason for the atypical price dynamics, according to market operators, was the increased supply of live pigs on the eve of the holidays, in particular animals with a weight exceeding standard slaughter conditions. The supply of such animals far exceeds the needs and capacity to sell the relevant products at fairs, markets and bazaars. This forces producers to offer products at prices below market prices. In turn, the ability to purchase cheaper raw materials puts additional pressure on the price of conditioned pork.
According to preliminary data, the number of commercial pigs in early April amounted to 3.69 million heads, which is 16% higher than in the beginning of the second quarter of 2023 and accounts for 67.7% of the total number of pigs in Ukraine.
The volume of pork sold for slaughter in all categories of farms in January-March 2024 amounted to 243.8 thousand tons in live weight, which is 2% more than in the same period last year, of which 140.2 thousand tons by agricultural enterprises, which is 5.5% higher than in 2023, the industry association stated.
The agricultural holding KSG Agro in January-March 2022 increased its revenue from the sale of pigs by 3% compared to January-March 2021, to $2.58 million.
The growth in sales was caused by an increase in the number of pigs in the agrarian group over the specified period by 17.6%, to 54,500 animals from 46,400 animals, and the offspring of animals – by 28.1%, to 32,300 animals from 25,200 animals, according to a press release from the agricultural holding on Wednesday.
“It is very important for us, especially from the point of view of food security, to increase sales of products. As a result, despite the conditions of martial law, we are able to help the Armed Forces of Ukraine and the defense forces by providing them with pork and other products,” KSG Agro quotes its board chairman Serhiy Kasyanov.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as production, storage, processing and sale of grains and oilseeds. Its land bank is about 21,000 hectares.
According to the agricultural holding itself, it is among the top five pork producers in Ukraine.
Cattle numbers in Ukraine as of June 1, 2020 amounted to 3.47 million animals, which is 6.6% less than on the same date in 2019.
According to the State Statistics Service, the number of cows by this date decreased by 6.3%, to 1.78 million animals.
The number of pigs decreased by 5.9%, to 5.97 million animals, the number of sheep and goats by 6.3%, to 1.49 million animals.
The number of poultry in the country decreased by 1.5% compared to June 1, 2019, to 231.12 million birds.
According to the State Statistics Service, cattle numbers in Ukraine in 2019 amounted to 3.12 million animals, which is 6.5% less than in 2018. The number of pigs decreased by 4.9%, to 5.73 million animals, sheep and goats by 4.8%, to 1.21 million animals, poultry grew by 4.2%, to 220.46 million birds.
Cattle livestock in Ukraine (excluding the temporarily occupied territory of Crimea, Sevastopol, parts of Donetsk and Luhansk regions) as of October 1, 2019 amounted to 3.597 million animals, which is 5.1% down on the same date in 2018, the State Statistics Service has reported.
The number of cows by this date also decreased 4.8%, to 1.89 million head.
According to the State Statistics Service, the number of pigs as of October 1, 2019, fell by 3.1%, to 6.25 million animals, the number of sheep and goats declined by 3.2%, to 1.47 million animals compared to the same period of 2018.
The number of poultry in the country compared with October 1, 2018, increased 4.6%, to 249.797 million birds.
