According to the survey of AgriSurvey Agency of the Association "Ukrainian Agribusiness Club" (UCAB), the cost of pork production in Ukraine is one of the highest in the world. The main reasons are the high feed and power costs. At the same time, experts of Stockholm International Water Institute (SIWI) claim that there exists a global problem of excessive use of resources for the production of meat. In the long term, they predict a decline of the culture of meat consumption in the world.

SIWI Experts claim that the worldwide meat consumption will soon enter into the stage of stagnation. The reason is simple - lack of resources, especially water. World agriculture consumes about twice as much water as all other human activities combined. Thus, to produce one kilogram of pork one needs 10,000 liters of water. And if the global decrease in grain production in the near future is not likely to happen, then, taking into account the growth of the world population and shortage of water resources in the future, the daily share of animal proteins in the diet of people will decrease from 600 to 150 calories.

This trend should cause concern of Ukrainian producers of meat. In particular, this refers to enterprises, engaged in swine rearing, because the share of pork in the structure of meat consumption in Ukraine is higher than, for example, the share of beef. zThe net volume of pork in the structure of meat consumption exceeds 30%, and of beef - is at the level of 15%.

At the same time the cost of pork production in Ukraine remains high and comparable to European indexes. "According to our research, conducted in collaboration with foreign colleagues, by cost of production, Ukrainian producers of pork are at the same level with pork producers from Germany, Ireland and Belgium where the cost of producing 1 kg of pork in slaughter weight is 1.5 euros. The lion share of costs in the structure of production of pork of the second category - up to 70% - is feed cost. At the same time, remuneration of labor is twice lower than in the EU "- said Taras Gagalyuk, director of "AgriSurvey" Agency of UCAB.
 

Information note: "Large livestock holdings in Ukraine: dynamics of development" - is an annual survey of the Association "Ukrainian Agribusiness Club," devoted to the analysis of structural changes and corporate management in meat and dairy industry. The study covers information on the top producers of milk, pork, cattle and poultry, the analysis of cost, marginality and profitability of livestock breeding with estimated break-even points, the technical efficiency and return of investment, the comparative analysis of expenses, as well as the analysis of macroeconomic issues, such the influence of Russia's WTO accession and VAT legislation on the development of meat and dairy industry in Ukraine and others.

Association "Ukrainian Agribusiness Club"
Velyka Zhytomyrska str., 20 А, office 53, Kyiv, 01001
Phone: +380 44 201-4950
Fax: +380 44 201-4951
099 272 59 30
[email protected]
Tetiana Kotyk
www.agribusiness.kiev.ua

The Association "Ukrainian Agribusiness Club" (UCAB) http://agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.