The share of energy resources in pork production costs may increase to 8-10% in Ukraine

Published Jan 9, 2023

Tridge summary

Pork production costs for domestic operators fluctuated around 10% in 2022 compared to 2021, largely due to a decrease in key feed crop prices which was offset by increased delivery and imported feed ingredient costs, leading to varied optimization of feed costs among operators. The unpredictable energy costs for 2023, following power outages in the last quarter, could further impact feed costs. Despite a higher average purchase price of pig carcasses compared to production costs, only 20% of operators are open to development plans. Most operators are focusing on full-time production to achieve stability, while some are updating brood stock and modernizing facilities. The pork market is expected to increase, but it will not cover all market losses, implying a need for support for the domestic pork price.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

During 2022, the cost of pork production in most domestic operators fluctuated slightly - about 10%, as compared to 2021. Oleksandr Bondarska, the head of the analytical department of the "Swine Farmers of Ukraine" association (ASU), announced such data, summing up the preliminary results of the efficiency of pig farms based on the results of the three quarters of last year. A significant decrease in the price of key fodder crops was "eaten" by the increase in the price of their delivery and imported feed ingredients. Accordingly, not all operators achieved complete and significant optimization of feed costs, she noted. "In 2023, the change in energy costs will add to the uncertainty of feed costs," Oleksandra Bondarska stressed. - Power outages in the IV quarter have already had a significant impact on the structure of production costs. If in previous periods the specific weight of energy costs reached 4-5%, then, according to preliminary estimates of operators, in the IV quarter ...

Source: Agrotimes