News
28.05.2013
Ukrainian beef cattle is under threat again
Reducing the demand for beef leads to further reduction of purchase prices for cattle. At the end of May the prices for bulls were 14,00-15,50 UAH/kg, which is on 1,00-1,50 UAH/kg less than the previous month prices and 5,50-6,00 UAH/kg less than at the same period of last year. This was reported by the Association "Ukrainian Agribusiness Club" (UCAB).
Since June of last year, the first time since independence, Ukraine had stopped reducing the stock of cattle. The number of cattle, though very slowly, but still has demonstrated upward trend. At 1 of May 2013 in Ukraine there were 5.32 million heads of cattle within cows, which is 3.2% more than last year. The statistics shows that most households have increased number of heads. This was primarily contributed by the government subsidies for maintaining the cattle quantity.
But now situation in stockbreeding is quite complicated, because the beef market demonstrates the decreasing of activity and, consequently, prices. Demand for beef from the population of Ukraine is traditionally not high enough, so manufacturers are oriented mainly on cattle processing plants. However, at recent time, processors have begun to prefer cheaper chicken mean, making recipe sausage into the side of a larger content of chicken. In addition, decreased demand for beef from Russia, so companies, focused on export, reduced the purchases of cattle. Therefore, realization of livestock is becoming increasingly difficult, especially bulls, because the demand for them is now at critically low level. Average price of purchasing bulls in weigh of 400 kg is 14.50 UAH/kg, but some companies reduce the price to 12.00 UAH/kg. Purchasing prices for cows of higher fatness are 11,50-12,00 UAH/kg, of middle - 10,50-11,00 UAH/kg. Decreasing of prices for live animals with an increasing in production costs makes the area more unprofitable.
Many households, in the face with low prices and problems of livestock realization, decide to stop producing meat cattle in the future. If the price situation would not change, the number of cattle would begin to fall again, and even grants for saving, giving the public by the government won’t save the meat cattle"- said the expert of agricultural markets Alina Zharko UCAB.
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
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.
