The estimated number of commercial pigs as of 1 June was 3.44 million (+7.8% compared to the same date last year, about 2/3 of the total number of pigs in the country). The estimated industrial supply of pork in slaughter weight in January-May was about 304 thousand tonnes, of which just under 180 thousand tonnes was provided by the industrial pig sector (+9% compared to the estimated supply of pork in 5 months of 2023).
The average purchase price in June was 53.2 UAH/kg including VAT (44.34 UAH/kg excluding VAT) or USD 1.3. USD (USD 1.1/kg excluding VAT, respectively) in foreign currency terms. This is down 10.1% or 6 UAH/kg including VAT compared to May.
"The summer for live market operators started with a decline in prices for slaughter pigs, in particular due to stricter power outage schedules. This factor affected not only the final sales but also the procurement activity of meat processing plants and slaughterhouses. In addition, market activity was also affected by more active mobilisation, which, on the one hand, forced changes in the operations of enterprises and, on the other hand, partially reduced the flow of consumers. Although both factors have not lost their significance, most participants in the supply chain have already adjusted to the new circumstances at the beginning of the new month, and trading activity is gradually stabilising. At the same time, the impact of seasonal factors on pork supply is becoming more noticeable, so this should support purchase prices," the industry association said.
In June, pork imports (UKTZED 0203) totalled 195 tonnes, and the average customs value per kilo imported was USD 2.27 (minus USD 0.3). USD/kg (minus 0.3 USD/kg compared to May). At the same time, pork exports in June were 1.5 times higher: almost 296 tonnes of pork were exported during the month, with a total value of about USD 700 thousand. US DOLLARS.
"In general, 2024 was a very atypical year for foreign trade in pork, because the gap between the volume of pig meat imports from abroad and exports of Ukrainian pork is not so significant. Thus, the total imports in January-June amounted to 1.63 thousand tonnes, which is 3.5 times less than the volume imported in the first half of 2023, while exports for this period were only a quarter less - 1.2 thousand tonnes - and already exceeded last year's volumes of shipments to foreign markets. Given the decline in domestic prices observed in the first half of the year, this is quite natural: a lower domestic price creates a barrier to entry for imported pork and at the same time helps to improve the competitive position of products in foreign markets," the AUPB explains.
The average retail price of a kilogram of chilled pork in June was 191.9 UAH/kg, down almost 1% or 1.8 UAH/kg from the May level. At the same time, not all meat parts fell in price. For example, shoulder and hip fell the most, by 2.3% and 2.8% respectively. The change in prices of premium tenderloin and loin was almost imperceptible, as the average price for the month was adjusted by 0.3%, or within 1 UAH/kg. On the contrary, the most popular part of the picnic season - the neck - went up by 1.6% in June. At the same time, the decline in average pork prices was in line with the similar dynamics of chicken prices (-0.8% compared to the average price in May), while beef added 5%.
"In addition to lower purchase prices for pork, a number of other factors also affect prices at the counter, including additional costs associated with adapting outlets to power outages. According to retailers' suppliers, not all of them were able to adapt to the force majeure circumstances. However, at the end of the month, most meat market players got used to the new realities and organised their work accordingly," industry analysts add.
The Association of Ukrainian Pig Breeders is a non-profit, voluntary organization founded by domestic pork producers. The main goals of the association are to represent and protect the rights and interests of the association's farms, promote the development and implementation of new technologies for efficient pork production, expand sales markets, and protect the domestic market.