Pork prices in Ukraine fall 10% in June due to energy crisis

MOSCOW. July 16 (Interfax) - The average purchase price for pork in Ukraine fell 10.1% month-on-month to UAH53.20 per kilogram including VAT in June due to stricter power outage schedules, Ukrainian media reported, citing the Association of Ukrainian Pig Breeders.

Market activity was also affected by more active mobilization for military service, which forced changes in the operations of businesses and partially reduced the flow of consumers, the association's analysts said.

The average retail price for chilled pork fell 1% from May to UAH191.90/kg in June. The steepest drops were 2.8% for pork hip and 2.3% for shoulder, while prices for neck, a cut that is popular during the picnic season, rose by 1.6%.

Despite the difficulties, commercial pig production in Ukraine grew. The estimated commercial supply of pork in slaughter weight rose 9% year-on-year to about 304,000 tonnes in the first five months of 2024.

Most market participants have already adjusted to the new circumstances and trading activity is gradually stabilizing. At the same time, seasonal factors should support purchase prices in the near term, the association said.

Ukraine's pork exports exceeded imports by 50% in June. The country exported about 296 tonnes of pork worth about $700,000, the association said.

The electricity shortage in Ukraine is due to disruptions in the operation of the energy system. The IMF expects the shortage to continue into 2025 and amount to about 10% of consumption overall and 30% of consumption at peak hours.

The official exchange rate was UAH41.04/$1 on July 15.