According to preliminary results of interim cost benchmarking in the first quarter, the weighted average cost of pork production excluding VAT was about 38 UAH/kg. "The average purchasing price of pigs for slaughter conditions in January-March was 37.9 UAH/kg, so not all companies were able to recoup their production costs. So, if some operators showed positive profit margins, others lost 3.8-9% on each sold kilogram", - analysts of the Association Pig Breeders of Ukraine comment.
Pork production costs in January-March 2022 ranged from 34-41.7 UAH/kg excluding VAT, while in the fourth quarter of 2021 the range of production costs of the corresponding sample was 33.6-39.2 UAH/kg. "The noticeable divergence is due both to different strategies of feeding and energy efficiency of enterprises, and the level of intensification of production, productivity and animal health," the ACU explains. The weighted average in the first quarter of 2022 exceeded the previous one by 1.6% or 0.6 UAH/kg: UAH 38/kg versus UAH 37.4/kg in October-December 2021. Analysts of profile Association note that the main reason for this change was the increase of material costs, not only because of the rise in price of feed, veterinary drugs and other inputs, but also because of the complication of access to them during the first weeks of war and rising logistics costs.
Details about the possibility of participation in pig farms benchmarking in Ukraine you can call +380674474680 or e-mail `o.bond@asu-ua.org
Association of Ukranian Pig Breeders is a nonprofit, voluntary organization founded by domestic pork producers. The main purposes of the association are representation and protection of rights and interests of the association farms, assistance in development and introduction of new technologies for efficient production of pork, expansion of sales markets, protection of domestic sales market.