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24 March 2019

Meat

The last few years were difficult for the meat industry in Ukraine, since the closure of the Russian market for domestic livestock producers; wich has led to a significant reduction in exports and oversupply on the domestic market.

Meat balance, thsd t 2015 2016 2017 08/2017 08/2018
Production 2136,1 2147,5 2160,5 1357,4 1366,5
     commercial farms
1374,9 1404,8 1405,7 927,6 946,4
     households 761,2 742,7 754,8 429,9 420,2
Imports 70,1 91,7 131,0 71,5 112,3
Exports 231,5 290,8 333,6 232,7 249,6
Food consumption
1879,6 1896,6 1918,5 1234,2 1220,3
Losses 44,1 44,8 45,8 28,6 29,6

Source: Own calculations of UCAB

As of September 2018, meat production increased to 1366.5 thousand tons compared to the same period last year (1357.4 thousand tons in 2017). This year there was an increase in meat production by agricultural enterprises, while households reduced their production. During this period the volume of import increased from 71.5 thousand tons in September 2017 to 112.3 thousand tons in the same period in 2018.

Beef

Beef balance, thsd t 2015 2016 2017 08/2017 08/2018
 Production 307 301 287 134,6 129,6
     commercial farms  74 78 74  46 43,5
     households
234 223  213  88,6 86,1
 Imports 2 2 1,2 1,3
 Exports 40  45  54 34,5 32
 Food consumption 251  261 234  126 124,4
 Losses 6 6 2,7 2,6

Source: Own calculations of UCAB

As of September 2018, beef production amounted to 129.6 thousand tons, which is 3.7% less than in the same period last year. Demand for products over the last 2 years has been decreasing due to the decrease in population due to the annexation of the Crimea and hostilities in the eastern part of the country. Also, the high cost of beef production and a low consumption culture have put pressure on production and as a result - at prices. At the same time, due to the threat of nodular dermatitis, the cattle population is cut out.



The cost of beef production

Source: State Statistics Service of Ukraine 

The cost of beef production increases annually, in 2016 it amounted to 3231 UAH / c.
The production of meat in Ukraine ceases to be unprofitable and starts to increase its profitability. The profitability of beef production in 2017 for the first time in recent years demonstrates the profitability of the industry.

The level of beef profitability, %

Source: State Statistics Service of Ukraine 

The price of beef remains relatively low, but grows each year under the influence of the increase in the cost price.

Procurement prices for beef on the bone

Source: State Statistics Service of Ukraine 

Pork

Pork balance, thsd t 2015 2016 2017 08/2017 08/2018
Production 645 640 626 431,4 410,6
      commercial farms 332 332 310 212,2 195,6
      households 314 308 317 219,2 215,0
 Imports 5 4 3,1 23,4
 Exports 29 4 6 5,4 1,7 
 Food consumption 591 623 614 428,6 432,6
 Losses 13 13  13  8,7 8,7

Source: Own calculations of UCAB

Production of pork in recent years shows a tendency to decrease. This tendency is the result of the decline in production and deterioration of the epizootic situation in the country (AFS outbreaks). Also, in 2018 there is a significant increase in imports - 23.4 thsd USD, which is almost 3 times as much as imports for the entire 2017 year.

The production cost of pork

Source: State Statistics Service of Ukraine 

The cost of pork production is at a high level, while the profitability only in the last two years shows a tendency to increase

The level of pork profitability, %

Source: State Statistics Service of Ukraine 

The cost of bacon breeds half-carcasses demonstrates the high level of volatility, which dealinf with a rising production costs, deterioration of the epizootic situation in the country and low level of exports.

Procurement prices for pork half-carcasses

Source: Price monitoring by UCAB

Poultry

Poultry balance, thsd t 2015 2016 2017 08/2017 08/2018
Production 1144 1167 1208 768,7 803,6
     commercial farms 968 992 1020 668,4 706,3
     households 176 174 188 100,3 97,3
Imports 63 85 121 67,2 87,6
Exports 163 242 273 192,8 215,9
Food consumption 999 973 1032 657,4 641,1
Losses 24 25 27 16,7 17,8

Source: Own calculations of UCAB

Poultry meat is almost the only livestock industry that demonstrates development. Production of poultry from year to year increases, exports increases, the geography of export expands. Demand for product is higher due to the lower prices compared to pork and beef.

The production cost of poultry

Source: State Statistics Service of Ukraine 

The cost of poultry production in 2015 amounted to 1154 UAH / kg, slightly lower than the previous year. Production of poultry meat in Ukraine is unprofitable, but level of unprofitableness is not as high as the beef production, which allows for neutralization of the losses by realization of crop production.

The level of poultry profitability, %

Source: State Statistics Service of Ukraine 

The cost of chicken meat in recent years has almost doubled, resulting from an increase in production resources costs, increased demand and upward price trend in the related markets of meat products.

Procurement prices for poultry

Source: Price monitoring by UCAB

For more detailed information, please contact: 
Grytsenko Daria
Tel.: ‎‎+380 (44) 236-20-95 
e-mail: grytsenko{@}ucab.ua