News update:Mar 9, 2016

Ukraine forecasts growth in demand for poultry

The rise in prices for all types of meat production has meant that Ukrainian consumers are abandoning the purchasing of beef and pork and increasing the consumption of poultry, market participants have claimed.

According to the Union of Poultry Breeders of Ukraine, chicken consumption in country currently amounts to 50% of the total consumption of meat products, while in 2013 this figure amounted to 40%. It is thought that in 2015 this figure could rise further.

According to official information, last year pork prices in Ukraine jumped by 58% to UAH 27 (US$ 1.68) per kg, the price of beef increased by 20 %, to UAH 55‑60 (US$ 3.44 – 3.74) per kg, while the price of poultry rose by 43 %, to UAH 23 (US$ 1.43) per kg.

Market participants in general do not doubt that the price of meat in the country's market will rise further.

"In the fourth quarter, feed production already used grain of the new harvest, the production cost of which is higher because of the increased cost of resources," says Anastasia Sobotyuk a spokesperson for country's leading poultry producer MHP. According to the estimations of the Agricultural Ministry, the cost of spring sowing and harvesting in 2014 was about 30% higher than in 2013.

At the same time, the head of the Union of Poultry Breeders of Ukraine Alexandr Bakumenko say that further price increases can lead to stagnation of the market. "The meat has risen in price, but people have no money. If the poultry would continue to rise in price, they just stop buying," he said.

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