Meat prices in Ukraine continue to rise, and, as experts explain, several factors are influencing this. Oleg Pendzin, a member of the Economic Discussion Club, spoke on Public Radio about the main reasons for the price increase.
One of the key factors has been the increase in the cost of feed, especially grain. According to the expert, the price of compound feed has a significant impact on the cost of meat, since, for example, up to 70% of the price of chicken is formed by compound feed. This increase in costs affects producers and ultimately affects the consumer price of the product.
There is also a decrease in meat production in Ukraine. Pendzin noted that pork was traditionally produced mainly in households. However, due to the outflow of labor from villages and the reduction in the rural population, pork production is decreasing. As a result, the supply of meat on the market is decreasing, which, in conditions of stable demand, leads to an increase in prices.
Despite these factors, Pendzin noted that the price of meat increased only slightly compared to last year, as price dynamics are also influenced by the purchasing power of Ukrainians, which remains at a low level.
Another important aspect is the increase in prices for other food products, in particular vegetables, which have risen by almost 50% compared to last year. According to the expert, weather conditions this year have negatively affected the harvest, which has increased the prices of potatoes, beets, carrots and cabbage. Some vegetables, for example, potatoes, have risen in price by 2-2.5 times.
Against the backdrop of rising prices for various products, including vegetables and meat, Ukrainians are forced to review their grocery baskets and choose cheaper options.
