Farm gate prices on slaughter pigs became weaker shortly before Easter. At the pre-holiday period the average price level is 1-1.5% lower than at the late March-early April, when it was 36,2 UAH/kg. Although the higher price range remains unchanged — 37 UAH/kg, its lower threshold decreases to 34 UAH/kg.
The strongest prices weakening took place in Western regions. By the end of the auction some producers sold their weekly amount 0,5-2 UAH/kg cheaper than at the beginning of the month. Live pig’s prices in other Ukrainian regions remained unchanged at the level achieved.
This year, at the pre-East week, farm gate price is 11% higher than in 2016. On the one hand, the reason is weaker slaughter pigs demand. On the other hand, production expenses have increased.
Particularly, the average price for diesel fuel has grown almost by 28% comparing to early April 2016. Almost a half of veterinary drugs became more expensive (some of them have raised by 2-8%, the other — by 30-60%). Feed prices, the main expense of the pig farm, are higher than a year before: corn and barley as for April,1 costed +8,5%, wheat +16%, and soybean meal raise its price almost by a quarter." — analysts of Association of Ukrainian Pig Breeders comments.
Taxes duty for pig producers increased after canceling special tax regime and minimal salary growing. Weakening of farm-gate prices to the average level of the last year or 2015, pork producers will work at red ink level.
The dynamics of farm gate prices on live pigs market of the first category (2012-2017)
Source: Analytical department of AUPB
Association of Ukrainian Pig Breeders — is a non-profit, voluntary organization. Established in July 14-th, 2011. At present, AUPB unites 35 farms, breeding stock of which amounts to 35% of the national volume. The main objective of the Association is to protect rights and interests of pig enterprises, achieve international standards of production due to implementation of modern technologies.
