Four of the seven products with the highest price increases this year include meat: pork, beef, chicken fillets and poultry carcasses. Focus I understand how and why food prices change.
The other day, the State Statistics Service published data on average consumer prices for food in 2023, and it turned out that, despite the sensations, prices did not increase for all products. Moreover, there are paradoxes in some positions. For example, eggs have become one of the cheapest products, while the price of poultry meat, on the contrary, has increased significantly. The price of potatoes increased by 19% in January-September 2023, despite the decline in prices of all other vegetables in the borscht set. writes about this Focus in his new material “Expensive meat, cheap buckwheat. How and why food prices are increasing in Ukraine in 2023.”
Meat prices are not stopping this year; everything is becoming more expensive: pork, beef and poultry. Experts say there are many reasons for the increase in prices of meat products: the complexity of logistics, increased fuel prices for transportation, increased feed costs and expensive electricity. We should not forget about the decrease in the number of animals due to hostilities and the occupation of part of the country’s territory.
The National Institute for Strategic Studies, based on data from the Ministry of Agricultural Policy, states: Up to 20% of cattle, pigs and poultry lost due to military operations by the end of 2022. Farms in the Chernigov, Kharkov, Sumy, Kiev, Donetsk, Lugansk, Nikolaev, Kherson and Zaporozhye regions were most damaged. These areas as a whole previously produced 20% of meat, 28.7% of milk and almost 45% of eggs.
By the end of 2023, the number of cows in Ukraine will decrease to 58% of the figure recorded at the end of 2015.
According to the estimates of experts of the Ukrainian Dairy Association, By the end of 2023, the number of cows will drop to 58% of the figure recorded at the end of 2015. The recovery of animal husbandry will occur gradually, and the decrease in the volume of activity in dairy farming, which is a strategic branch of animal husbandry, poses a number of threats to the country’s food security in terms of providing milk to the population. products.
Oleg Pendzin, Executive Director of the Economic Discussion Club, thinks: Food prices will continue to rise in the near future and will increase by 3-4% by the end of the year.
Experts point out that consumers’ demand for products has increased as Ukrainians return from abroad before the school term begins. Other important reasons include rising fuel prices, as well as expectations of the devaluation of the Hryvnia due to the introduction of a flexible exchange rate.
According to the estimates of the interlocutors Focus, Until the new year, the price of meat products will increase by at least 3-5% and the price of dairy products will increase by 10-12%. The situation in the livestock sector remains difficult. Added to the decrease in the number of animals is the increase in production costs and the lack of financial resources of farmers to restore destroyed livestock buildings and purchase young animals. Moreover The functioning of the industry is affected by the state of electricity supply to livestock enterprises, due to the stable supply of products on which ventilation, heating, cooling and storage systems depend..
Seasonality is added to the military factors of rising prices: prices for meat and lard always increase in winter
Seasonality is added to the military factors of rising prices: prices for meat and lard always rise in winter. Seasonality also affects milk prices. As winter approaches, cows produce less milk, its quality deteriorates, so milk becomes more expensive in winter. Accordingly, the prices of all dairy products are increasing. According to experts, the biggest price increase among all dairy products will be seen in butter. cost may increase by 15-20%.
Egg prices in Ukraine will also increase significantly. And, like last year, they will reach their highest value (75 UAH and above) before the New Year holidays. This opinion was expressed by Alexander Gaidu, Chairman of the Agricultural and Land Policy Committee.
Let us remind you that prices for public services to consumers will not change in November, but tariffs will increase in 2024.
As I wrote before FocusRussian restaurants complain about a shortage of chicken meat. At the same time, the press service of the Ministry of Agriculture of the Russian Federation notes that “the domestic consumer market is completely supplied with poultry meat.”
Source: Focus
John Holton is a seasoned author and journalist, known for his expertise in economics. He currently works as a writer at 24 news breaker, where he provides readers with in-depth analysis and commentary on the latest economic developments. With a background in finance and a talent for explaining complex economic concepts in a clear and accessible way, John’s writing is a must-read for anyone interested in staying informed about the economy.