Uman NUH | today: 04/13/2024

The impact of the factor of war on the domestic pig production (march—august 2022)

Author(s) Nesterchuk J. A., Doctor of Economic Sciences, Professor of Economics,
Юрченко О.С., , ,
Category Economics
year 2022 issue Issue number 101. Part 2
pages 292-301 index UDK 339.9.01
DOI 10.32782/2415-8240-2022-101-2-292-301 (Link)
Abstract In recent years, commercial pork production in Ukraine has been struggling. It led to decrease of number of market operators and population of pigs. A full-scale war has deepened the industry crisis that negatively influenced the country's food security in terms of supplying the population with pork which has 36 % share in meat consumption. The purpose of the study is to analyze pig production during six months of war, the impact of the war factor on the number of pigs, domestic pork price, foreign trade balance, etc. Since the beginning of the war, pig population of Ukraine has decreased by 12 %. As a result, the overall volume of supplies to the domestic market could fall by 100,000 tons of live weight (-10,2 % compared to 2021). Reduction in the supply led to increase of average price on chilled pork by 15 % during six months of war. This has resulted in more competition between pork and poultry. The war factor has a negative impact on the foreign-trade balance. The blockade of ports has halted pork exports. In the first eight months of 2022, pork imports amounted 38,000 tons, which is three times more YOY and equals 12 % of domestic pork market volume. Despite business risks arising out of war, loss of qualified farm personnel due to mobilization and displacement, growing pressure of pork imports, drop of pork consumption due to migration of millions of Ukrainians and purchasing power loss coursed by reduction in income and forced unemployment, most producers continue operating steadily in the areas controlled by Ukraine. Approximately 20 % of companies engaged in pig production have plans to expand capacities. The stimulus is 15 % rise in the price of pig live weight.
Key words the war factor, commercial pig production, pork supply, pig population, foreign-trade balance, chilled pork
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