Though most pork producers stated that feeding expenses went down because of weakened domestic prices for grain and protein feed, they testify that prices for premixes went up by 7-20%, and some products - even more. Feed additives market experts attribute this to the increase in logistics costs, as well as to the increase in prices of raw materials.
One of the most important factors in the rise in prices of premixes is the rise in price of mineral ingredients. Particularly, both Ukraine and EU countries are forced to find alternative and optimal suppliers of monocalcium phosphate in terms of product quality. Other mineral ingredients are also in short supply, which pushes the prices up. Yes, some positions rose in price by 30-50%. In addition, salt and soda have now been added to the import requirements of feed additive producers. As for increase of prices for amino acids (lysine chloride, threonine, methionine, etc.) due to their shortage, this phenomenon was temporary. At the same time, prices for vitamins remained relatively stable.
At the same time, the cost of delivery of imported "consumables" has more than doubled not only because of the rise in fuel prices. Yes, often in the calculation the company-buyer is charged with transportation costs for the return journey of the vehicle as well.
In response to these price dynamics, feed ingredient suppliers point out that pig farmers may pursue different strategies depending on the size of the company. For example, the largest market operators (2,000 or more sows) focus on maximizing the potential of animals through feed, despite rising costs. At the same time, smaller players often choose to save on feed crops or additives by switching to a basic line of premixes.
Estimates by feed market operators of price increases in premixes compared to the pre-war period vary markedly between 10 and 30%. There is considerable disagreement due to the fact that a number of suppliers can restrain the increase in price due to currency risks built into the pre-war prices, their own stocks made before the war and direct contracts for the purchase of large batches of feed ingredients from the EU. At the same time, suppliers say that the next wave of premixes price increase is likely to take place closer to the autumn. It will lead to higher prices for energy and freight of raw materials from more distant countries, particularly amino acids from China.
In the market of veterinary drugs there is an increase in price of some positions up to 40%. Although key international companies represented in Ukraine say that since the war the prices for most drugs have changed slightly, primarily due to the NBU's currency rate revision (the price in foreign currency has not changed!), there are operators in the market, taking advantage of the situation, raising the price tags almost twice. The main argument they cite is the rise in price of purchases due to the devaluation of the hryvnia. At the same time all international contracts are now conducted at a fixed rate of the interbank market, which has not deviated from the prewar current rate as much as the cash one.
On the other hand, such an ambiguous situation in the market encourages pork producers to monitor market offers more carefully and choose the circle of counterparties more carefully.
The Association of Uktanian Pig Breeders — is a non-profit, 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 the development and introduction of new technologies for efficient production of pork, expansion of markets, and protection of domestic sales market.