The loss of a weighty portion of operators and a weighty portion of supply could not help but affect the price situation — something the pork industry has faced this year. First of all, the formation of regional pork markets.
«When we see a significant difference in purchase prices, depending on the region to which the operator belongs. It should be noted that in certain periods, of course, the purchase price converges to the national average. However, the difference in prices between regions could be two or three hryvnia, sometimes the difference between east and west reached about five hryvnia, which significantly distorted the price situation throughout the pork market. The main premise of these circumstances was: first, a significant change in the distribution of forces in the market, as part of the operators decided to withdraw from the market because of the significant risks. This applies to enterprises that suffered direct losses due to the war or were in the territories with hostilities. In addition, there were significant changes in demand in certain regions due to migration of the population, due to fluctuations in demand from processors. Factors were more than enough to form certain centers and consumption and price formation with these centers in the western Ukraine, mainly in Lviv region, Kyiv region (central Ukraine), Dnipropetrovsk region, Kharkiv region in the east and in the south — Odessa and Mykolaiv region», — comments the Head of Analytical Department of the Association of Ukranian Pig Breeders Oleksandra Bondarska».
Refer to the speech of Oleksandra Bondarska at the webinar «Pig Production: the results of 2022 and the prospects of 2023»:
The Association of Ukranian Pig Breeders is a nonprofit, voluntary organization founded by domestic pork producers. The main objectives of the association are representation and protection of rights and interests of the association farms, assistance in development and implementation of new technologies for the efficient production of pork, expansion of markets, protection of domestic sales market.
«When we see a significant difference in purchase prices, depending on the region to which the operator belongs. It should be noted that in certain periods, of course, the purchase price converges to the national average. However, the difference in prices between regions could be two or three hryvnia, sometimes the difference between east and west reached about five hryvnia, which significantly distorted the price situation throughout the pork market. The main premise of these circumstances was: first, a significant change in the distribution of forces in the market, as part of the operators decided to withdraw from the market because of the significant risks. This applies to enterprises that suffered direct losses due to the war or were in the territories with hostilities. In addition, there were significant changes in demand in certain regions due to migration of the population, due to fluctuations in demand from processors. Factors were more than enough to form certain centers and consumption and price formation with these centers in the western Ukraine, mainly in Lviv region, Kyiv region (central Ukraine), Dnipropetrovsk region, Kharkiv region in the east and in the south — Odessa and Mykolaiv region», — comments the Head of Analytical Department of the Association of Ukranian Pig Breeders Oleksandra Bondarska».