In first days of March price increase on slaughter pigs became more active. During the last week of winter average mark rose less than 2%, the ninth week ended with three-percent growth. As a result, the farm gate price on Ist category pigs vary within 26.0-27.8 UAH/kg. The upward movement continues in 10th week. So, slaughter companies buy the meat-type pigs in average by 27.7 UAH/kg and live weight basis of 2nd category by 26.3 UAH/kg.
The reason of such price swings was active demand of purchasers. Some of them have even noticed some deficit of live pigs. During long-term holidays consumers demonstrated some activity. But this splash shouldn’t be accepted as coming tendency. On the one hand the retail hasn’t managed to level up prices on final products. From the other hand, starting with third week of spring begins the Sunday Great Fast. It will correct the meat consumption downwards. According to meat processors, the activity of demand can lose about 20% during the fasting days, however the situation will vary within regions.
Nevertheless, the majority of market players wait for continuation of positive trend of farm gate prices in further next weeks. Some of them even announce the price increase to 30 UAH/kg. But there is more skeptical position; it states that price will get relative stability in short terms. The improvement of weather conditions, expectations for active demand as well as information about pork outflow through unofficial channels serve as price support.
Dynamics of average purchasing prices on live pigs of Ist and IInd categories (according to meat processors), UAH/kg
Source: Analytical Department of APBU