According to the operators, the opening of transit channels does not introduce substantial changes in the situation on the domestic pork market. Thus, the corresponding authorization does not cancel the export isolation due to the ASF, and does not open the EU pork market for the operators. The only thing that this option gives is the possibility to carry out deliveries that were disrupted due to the Russian attack, and only if such arrangements remain in force. Ukrainian pork exporters note that the geography of foreign trade in pork before the war was limited and most exports were shipped by sea. «Under current circumstances, Ukrainian pork will not be competitive in foreign markets, both because of higher purchase prices, and because of more than twofold increase in transportation costs in the case of transit through the EU, as well as higher fuel costs. In addition, given this and the overall situation in the country, the external demand for domestic pork, we do not feel,» — commented the traders. Experts of «Pig Breeders of Ukraine» Association point out that although obtaining a permit for transit of pork and beef in the EU countries is a positive development, and negotiations with the Commonwealth of Independent States are aimed at the liberalization of trade, the Ukrainian pork market has not yet experienced positive changes.
In contrast to «frozen» pork exports, imports have significantly revived. Thus, according to preliminary estimates, imports of pork in January-May exceeded 22 thousand tons. This corresponds to 16% of industrial production or 8% of the total capacity of the pork market and exceeds more than twice the volume of external supplies of pork at the end of May 2021.
The revival of pork imports was facilitated by the possibility for individuals-entrepreneurs of groups I-III to import products from abroad without paying import duties and value added tax. In particular, the tax benefits reduce the barrier price at which imports from abroad becomes economically justified by 20−32% (by 20% when imported within the annual quotas under a duty-free agreement with the EU and by 30−32% when imported in excess of the established quota). «Although the influence of the activity of external supplies on the domestic pork market and the price situation on it is not critical, the further extension of such tax preferences for enterprises-producers, will squeeze domestic operators of the pork market in the price and tax vise and put at risk the further work of domestic operators of the whole chain of added value of pork», — convinced the Association of Ukranian Pig Breeders.
The Association of Ukranian Pig Breeders is a non-profit, voluntary organization founded by domestic pork producers. The main objectives of the association — representation and protection of rights and interests of the association farms, promoting the development and introduction of new technologies for the efficient production of pork, the expansion of markets, protection of domestic sales market.