Most Ukrainian pig breeders cannot keep large livestock, and therefore they are constantly reducing it, instead of purchasing new animals. To keep the power, they are forced to raise prices for their products, although there is still not enough money to upgrade. So it turns out a vicious circle, writes in his blog on “fi.noviny” Artem Kovbel, partner of Kreston GCG.
Given that world prices for pork are declining, we are in a situation where importing a foreign product has become more profitable than buying a domestic product. Accordingly, Ukrainian pork loses in the world market and loses on export volumes.
According to Kovbel, we lost the status of the net importer of pork last year, when the share of imports exceeded exports. However, the things were smoothed out by one fact: the total value of exports was $ 10.5 million, and of imports — $ 9.96 million and, formally, it could be argued that we sell pork more than we buy.
According to the SFS, in the first half of this year, the imports almost 9 times exceeded last year: 8,400 tons of pork worth $ 15.4 million were imported to Ukraine, while 924 tons were imported over the same period last year.
And, according to Kovbel, the share of imports will continue to grow.
Another fact that testifies to the backwardness and the subsequent decline of Ukrainian pig production is the inability to take control of the ASF disease of pigs for several years. According to Kovbel, in Ukraine there is still no research on this issue, it means that ASF will continue to spread across Ukrainian farms.
Kovbel makes a disappointing prediction: in the near future, Ukraine will not be able to increase production and exports of its products. The indicator of pork imports has grown for several reasons, and even under the most favorable conditions, it takes a lot of time to eliminate them. In the case of our country, the state power does not solve the problems accumulated in both pig-breeding and livestock in general.