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Ukraine Herd Numbers Stabilise

13 September 2012

UKRAINE - Production of beef is expected to stabilize in 2012 with a continued stable production outlook for 2013. Cattle numbers would remain stable for the first time in last 20 years, according to the USDA's Foreign Agricultural Service.

Cattle/beef production in Ukraine remains a derivative of the dairy industry and is highly dependent on the milk price and the availability of export markets for Ukrainians dairy products.

Ukraine's production of beef is expected to stabilize in 2013, although little sign of recovery is expected in 2013 despite some investments into dairy sector.

Upon introduction of export restrictions on Ukrainian cheese by Russian Federation, many small private milk producers reviewed their plans and slaughtered animals. The trade conflict over Ukrainian cheese was partially resolved, but many producers were delisted and could not continue exporting. Exports of cheese from approved facilities are complicated by the new rules. According to some experts total cheese export decrease may reach 30 per cent by the end of 2012.

In an attempt to fix the situation, the GOU tried to introduce a minimum milk price in the fall of 2012. This soviet type administrative restriction had proven to be counterproductive during multiple previous GOU attempts to control retail process or to control grain prices.

Similar to pork, the cattle price remained high providing additional support to beef production in the country. Direct access to Russian market facilitated to high price spillover into Ukraine. No significant trade restrictions were introduced by Russian Federation on beef products.

Further Reading

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