Ukraine: An active increase in cattle carcass prices is observed in February

Frozen Bone-In Beef

Meat

Ukraine

Published Mar 1, 2023

Tridge summary

This is the second wave of price strengthening since the start of the full-scale war, when in the spring of 2022, purchase prices for live cattle fell sharply, by almost 30-40% (depending on the region) and remained low until August. Since beef production is mainly an export-oriented industry, the blocking of ports was a strong blow to the market, reports UKAB.

Original content

The first increase in prices was observed at the beginning of autumn last year, as the pre-war volumes of export deliveries had already been established, which provoked a gradual increase in demand and activation of the market. In addition, macro-financial indicators (inflation rate) also affect the cost of products. Currently, prices are also rising, which is caused by the following factors: 1) Export activation. In January, 1.11 thousand tons were exported, which is 1% less than last year. Beef exports in January have pre-war supply volumes and are gradually increasing in February. The export of live cattle also increased, which affects beef production as well. 2) Keeping animals in farms before sowing. In some regions, a situation is recorded when producers do not specifically send animals to slaughter, but wait for spring sowing in order to immediately cover costs. 3) Gradual population reduction. The decrease in the number of animals is primarily caused by military actions on ...

Source: Infoindustria