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Recession Beckons Meat Crisis in Ukraine

06 March 2009

UKRAINE - Developments of the world economic and financial crisis resulted in a severe decrease in consumer income in Ukraine.

Local currency devaluation as well as introduction of an increase of 13 per cent import duty for all meats and meat products calls for a review of production and import numbers in previously submitted PSDs, says a USDA Foreign Agricultural Service GAIN report.

The world economic crisis quickly developed and became a national crisis in Ukraine. A collapse in employment and currency devaluation resulted in a significant purchasing power decrease. Elimination of the major factor driving consumption (and imports) resulted in a decrease of red meat and poultry imports for the first time in the last 8 years.

With insufficient domestic production of both poultry and red meats the market remains highly dependent on imports. A significant price drop observed in the world market in the same time period was not able to offset the negative consumption trends in the country.

Negative macroeconomic developments are not over, thus exact consumption trends are difficult to predict with accuracy. The report updates PSD tables to reflect new economic developments.

This report covers all kinds of meat: poultry, beef and pork due to significant potential for substitution in consumption of all animal proteins. Analysis of meat markets in crisis is a difficult task due to an abundance of macroeconomic factors that are not usually encountered in GAIN market reports.

Further Reading

- You can view the full report by clicking here.

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