Rising food prices in the European Union in October 2012 compared with the corresponding month of the previous year was 2.6%, while in Ukraine during the same period, food prices fell by 2.1%. This was noted by the Association "Ukrainian Agribusiness Club".

UCAB experts pointed out, referring to the data provided by the European Commission, that the largest contribution to food inflation in the EU was made bread and cereals (rising by 2.1%), meat (+3.8%), milk, cheese and eggs (+ 1.5%), sugar (+3.4%), oils and fats (+0.2%). Thus, changes in the prices for all staple food were positive. .

Instead, in Ukraine in January-November 2012 compared to the same period last year there was observed the increase in prices for meat and meat products (+7.6%), bread (+5.4%), milk, cheese and eggs (+3.1%), while the prices for vegetables decreased by 47.2%, sugar - by 29.8%, fruit - by 5.7%.

UCAB experts explain the rise in prices for grain and livestock products by a significant increase in the cost of grain and fodder under the influence of weather conditions, when in the steppe regions the grain yield in 2012 was 15-18 dt/ha instead of the expected 25-30 dt/ha.

"Agricultural sector of Ukraine in 2012 was became the hostage of rising prices for resources of agricultural production by 8.5%, on the one hand, and of lower food prices by 2.1 - the other one" - says Director General of UCAB Volodymyr Lapa. As a result, the profitability of farms may decline from 18.8% in 2011 to 10-12% in 2012. UCAB emphasizes that under such circumstances it is important not to impair the work framework in agriculture, particularly in terms of tax incentives for the industry and of its budget support.

Association "Ukrainian Agribusiness Club" 

Velyka Zhytomyrska str., 20 А, office 53, Kyiv, 01001

Phone: +380 44 201-4950

Fax: +380 44 201-4951

099 272 59 30

[email protected] 

Tetiana Kotyk

www.agribusiness.kiev.ua

The Association "Ukrainian Agribusiness Club" (UCAB) www.agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.