Ukraine continues to struggle against livestock industry crisis

Statistics published by the Static Services in Ukraine for January-September 2012 revealed that production of fresh and chilled beef and veal was 6.5% lower than the same period last year, down to 39,000 tonnes (t), while the first nine months of this year saw production of frozen beef and veal falling 13.6% year-on-year, to around 10,100t. The September 2012 figures for beef and veal was 10.3% lower than in September 2011, at 1,200t.

Production of fresh and chilled pork in Ukraine also fell in the first nine months of this year by around 7.5% from the same period in 2011, down to 125,000t, while frozen pork production over the period was estimated at 5,200t, around 8.2% less year-on-year. In September alone, the amount of frozen pork was 9% lower than the same period last year, at 500t of frozen pork, while fresh pork production was 12,100t, a fall of 10.8% from September 2011.

Poultry meat production also saw a slight decrease. Fresh and chilled poultry and poultry by-products from January-September 2012 amounted to 542,000t, around 0.6% lower than during the same period in 2011, while production of frozen meat and edible offal of poultry products totalled 53,300t, around 14.4% less than January-September 2011. However, September 2012 saw frozen and edible offal production rise to around 6,400t, an increase of 1.8% from September of 2011, although fresh poultry meat production fell by 0.2% year-on-year, to 60,600t.

Direct support​

Ukraine reported a drop in meat production at the beginning of 2012 and, to deal with the crisis, the government initiated the payment of direct subsidies for cattle breeders.

The Ukrainian Minister of Agriculture Nykola Prysiazhniuk explained: “The state currently pays UAH1,000 (US$122) for saving of young animals. For example, if the owner of the animal grew it for three months he will receive UAH250 (US$30.60); for six months’ growth he receives another UAH250, for nine months - another UAH250, and another UAH250 after a year. We started the programme on 1 June, and those farmers who have, for example, a half year-old steer or heifer received UAH500 (US$61.20) immediately and will continue to receive compensation for up to a year.”​

According to the minister, this year the state budget will allocate UAH67m (US$8.2m) for the payment of subsidies to private farmers selling animals to the meat processing plants. Next year’s draft budget also provides for continued subsidising of livestock for slaughter, and the government is now calculating the cost of this programme.