This week the movement of backyard prices was marked by a «steep turn». After three weeks of quotations’ decrease, expected prices are higher. The average price during the first decade of March was nearly 31.3 UAH /kg. But at the close of trading the price has regained: the majority of pig producers plan to sell their production extents by 2-4 UAH/kg higher copared the week earlier.
The active season of pre Easter pork storage hasn’t started yet. But limited offer of slaughter pigs from big and small market players pushes prices to the peak level. Another factor of price increase are growing spendings of producers. For example, if the planned price for this week is 9,5% higher than for the start of the year, the grain group prices has grown the same way. Diesel went up by 3.6 % and the capital amount of pig farms became lower because of full cancellaion of special VAT treatment.
Farm-gate price dynamics of the live pigs of the 1-st category (2012-2017 years)
Source: Analytical department of AUPB
Retail
At the end of the last week, retail prices respond to the purchase cheapening slowdown by moderate decrease. At the beginning of march prices on pigs’ parts at trading network have decreased by 3%, but last Friday their cheapening was limited by 2%. The only exception was the loin price. It became cheaper (minus 6.6 UAH/kg compared to the price of March, 3) and now it costs 103.5 UAH/kg as it was at the end of the January. Of note, as of March 10, on average the retail prices of pork loin were 5% lower than the previous month. However, they are equal to their pre New Year level.
Dynamics of average retail prices for some pork cuts as at February, 17, 2017 up to March 10, 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.
