News
06.03.2013
Swine rearing profitability of households approaches zero
The growth in pork imports in 2012 up to 204 thousand t resulted in a decrease in pig population in households and the growth in industrial pork production. The high cost of swine rearing in households cannot compete with either companies that produce pork or with imports of this type of meat.
According to the State Statistics Committee, as of February 1, 2013 the number of pigs increased by 3.7% up to 2.55 million heads, compared to last year, while the growth in pig population in agricultural enterprises amounted to 8.6% - up to 3,63 million heads, while pig population in households decreased by 0.5% to 3.91 million heads.
"Lack of efficient maintenance and feeding technology, high-quality genetic material, longer periods of feeding and higher cost of feed per 1 kg of body weight reduces the profitability of swine rearing in households to zero. Therefore, the high cost of pork, produced by households, does not allow to compete either with domestic pork producers or with pork imports," - UCAB advisor on agricultural markets Elisabeth Svyatkivska says.
In addition, high competition in the domestic market led to a significant reduction in purchase prices for live pigs that are already the lowest in the last three years. According to experts, prices for second category pigs over the past few months dropped to 16 UAH/kg, and prices for bacon and meat pigs amount to 18-18,5 UAH/kg. Meanwhile, the cost of swine rearing in Ukraine, depending on the enterprise category, amounts up to 17-19 UAH/kg.
Due to the decline in meat imports in January and assessment, made by market operators, on smaller supply of imported meat on the domestic market, in February prices for live weight pigs started to increase, but only by 0.5 UAH/kg, which almost did not influence the cost of wholesale and retail meat.
