Ukraine bacon price extremely high for two reasons

The bacon price in Ukraine has risen by no less than 68% this year to $3,70 per kilo. This is due to a rapid decline in the pig population and the many outbreaks of African swine fever.

The Ukrainian government believes that the shrinking pig population is the main reason for the rapid price increase. In 2017, the number of pigs decreased by 10% to 6,7 million. The shrinkage is especially visible in the so-called 'backyard farms', which are closing the door en masse. They probably stop producing due to the many outbreaks of African swine fever.

African swine fever is on the rise  
So far in 2017, 140 outbreaks have been registered with the government authorities and the number is likely to exceed 200 this year. This is a worrying development, given that 'only' 2012 cases of African swine fever are known between 2016 and 148.

In Ukraine it is the backyard farms that take care of the bacon production. This is because the industrial production systems aim for a leaner pig and also apply the genetics to this. It is expected that there will be a bacon shortage in 2018 and that Ukraine may import it from countries such as Germany and Poland.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.