Total supplies of fresh, chilled and frozen pork meat in April 2023 were 16% lower than in March and amounted to 424 tonnes, the association Pig Breeders of Ukraine said.
In monetary terms, Ukraine imported $1.03 million worth of pork in April, the industry association cited data from the State Customs Service on Wednesday.
According to analysts, the April figure was the lowest since 2018.
“In contrast to previous years, low import activity has created an atypical lever of support for domestic prices in the pork market, because raw materials from abroad are not yet creating competition to domestic ones,” the association noted.
Analysts explain this trend by the continuing increase in pork prices in the EU, which has lasted since January and, although it slowed down a little in April, but did not stop.
“It is more difficult for domestic importers to find affordable commodity items for the Ukrainian market,” – stated in the association, noting that the average cost of imported pork in April rose to $ 2.4 per kg compared to $ 1.88 per kg in March.
Overall, in January-April 2023 Ukraine received 3.58 thousand tons of chilled and frozen pork meat, which is 4.5 times less than during the same period in 2022.
The total supply of chilled and frozen pig meat in March 2023 from the EU was almost 67% lower than last year, falling to 503 tonnes, the Association of Ukrainian Pig Breeders has reported.
In monetary terms, Ukraine imported $949,000 worth of pork in March, the data of the State Customs Service was cited by the industry association.
According to its analysts, this is the lowest monthly figure since 2018.
“During March, the average price of pork by slaughter weight in the EU was about $2.54/kg. The price of pork imported to Ukraine fell to $1.88/kg, which is 5.7% lower than in February this year,” the association said, explaining the decline in import activity by higher prices in EU countries compared to prices for domestic products.
“Even the absence of import duties has not made European pork more price-competitive compared to domestic pork. As long as this status quo persists, external supplies of pig meat will remain inactive,” the industry association predicted.
In general, in the first quarter of 2023, pork imports amounted to 3,160 tonnes, which is more than 75% less than in the first quarter of 2022, the analysts said.
Ukrainian importers in January-August fully used quotas for duty-free import of pork from the European Union, further import of chilled pork will be subject to a 12% duty, and frozen pork – 10%, this was reported on the website of the Pig Breeders of Ukraine association. “As of September 1, some 20,000 tonnes of chilled and frozen pork from the EU countries were brought to Ukraine. This corresponds to the quota for duty-free supply of pork from the European Union countries established under the economic part of the Association Agreement. Since these limits have been used this year, each next kilogram of European chilled pork will cost importers 12% more due to the duty, and frozen pork meat will rise in price by 10%,” the organization said.
According to the association, there has been some recovery in import activity this year, which confirms the use of the pork import quota in August, while in previous years the import quota was used in November-December.
It clarified that Ukrainian importers have similar agreements on duty-free supplies of up to 14,400 tonnes of pork from Canada (the quota was used by 9%) and up to 1,700 tonnes from the UK (no deliveries from this country were made in 2021).
“If the import of raw meat from these countries becomes economically attractive for the importer, the supply of frozen pork is unlikely to have a significant impact on the domestic pork market. In addition, the expected changes in exchange rates in the fall will also increase the entry barrier for imported raw materials,” the association concluded.
Pork consumption by Ukrainians in 2021 will grow by 4.7% compared to 2020, to 15.5 kg per person per year (excluding fat and offal), which will be the highest result since 2013, when this indicator per capita was 17.9 kg.
This opinion was published on the website of the Association of Pig Breeders of Ukraine with reference to data from the UN Food and Agriculture Organization (FAO).
“The increase in pork consumption is determined by several factors, including the growth of domestic production. Pork occupies niches that free up other types of meat, primarily chicken. So, in 2021, the consumption of chicken will decrease by almost 2 kg,” FAO agricultural markets expert Oleksandr Sikachyna quoted in the post.
According to him, the elasticity of demand for meat is slow: consumers need time to change their purchasing habits, so consumption will not be able to quickly respond to high rates of production growth.
Pork production in Ukraine in 2021 will grow by 3.1%, poultry – by 0.1%, while beef production will decrease by 6%, milk and dairy products – by 4.2%, eggs – by 4.3%, fish catch – by 2.3%, such balances of supply and demand were announced by the Ministry of Economy.
Production of poultry in Ukraine in 2021 will amount to 1.43 million tonnes, exports will decrease by 0.9%, to 430,000 tonnes, and imports by 7.1%, to 104,000 tonnes.
Annual supply of poultry on the domestic market will exceed demand by 1.3 times, by 326,000 tonnes in absolute terms.
Pork production in Ukraine in 2021 will grow by 3.1% compared to 2020, to 740,000 tonnes, and demand will exceed supply by 10.9%, or 90,000 tonnes. Imports of this product over the same period will decrease by 2.9%, to 100,000 tonnes, while exports will grow by 20%, to 10,000 tonnes.
Beef production in Ukraine in 2021 will decrease compared to 2020 by 6%, to 294,000 tonnes, and the domestic supply will exceed the demand by only 3.6%, or 11,000 tonnes. According to the department, in such conditions, exports will fall by 26.3%, to 28,000 tonnes, while imports will grow by 5.8%, to 17,000 tonnes.
Production of milk and dairy products in Ukraine in 2021 will decrease by 4.2% compared to 2020, to 9.10 million tonnes, of which 2.79 million tonnes will be produced by enterprises, and the rest – by households. At the same time, the import of this product over the same period will increase by 0.08%, to 750,000 tonnes, and exports will decrease by 10.4%, to 360,000 tonnes, which is a consequence of the excess of domestic demand over domestic supply at the level of 420,000 tonnes.
Egg production in Ukraine in 2021 will decrease by 4.3% compared to 2020, to 896,000 tonnes. The catch and production of fish and fish products in Ukraine in 2021 will grow by 2.3% compared to 2020, to 126,000 tonnes.
Singapore has opened its market for Ukrainian pork. “For the first time since long a foreign market has opened for Ukrainian pork. Singapore’s regulator has accredited a Ukrainian enterprise for export of thermally processed/tinned pork and chicken meat,” the State Service of Ukraine on Food Safety and Consumer Protection said.
It also said that those were the first steps towards the opening of the global market for Ukrainian pork.
