The price drop for the purchase of pork was accelerated

In late January, the cost of pork live weight on the market is plummeting. Thus, in the third decade of the month, the average market lost 4.4% of its cost. However, a week earlier, the price fell by only 3%. This was reported by the Association of pig-breeders of Ukraine (APBU), writes agroportal.

At the last sales, producers sold batch of pork on 1-2 UAH/kg cheaper than a week earlier. This week, the price range was 39-42 UAH/kg. However, single meat processors set lower purchase's prices.

“The reason for the accelerated price drop was the post-summer's sales lethargy.  Although the lull on the market in the second half of January and during February is predictable and usual, some meat-processing factories note that sales are on 5-7% less than in the corresponding period last year”, informs the Association.

According to buyers, the offer on live weight exceeds the demand for pork. That is why the extent of pork procurement decreases in response to falling sales, noted the APBU. So, some meat processors buy only 40-50% of traditional live pork and work on stocks of raw materials. At the same time, those corporates that have their own pig farms temporarily suspended the purchase of raw materials from third-party suppliers.

“Considering these trends, experts believe that next week the average price on the live weight pork market will continue to decline. In particular, according to the results of the survey among the participants of the Association, the maximum price may drop to 40 UAH/kg for the last week of January. Therefore, the majority of meat-processing factories adjusted to buy pork in the range of 39-40 UAH/kg", – predicts the Association.