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Growth of grain prices directly influences prices for eggs, poultry meat and pork
30.07.2012 10:41 "Agro Perspectiva" (Kyiv) —
If world prices for grain crops rise, it is worth expecting growth of prices in Ukraine too. This opinion was expressed by Head of the Union of Poultry Breeders Oleksandr Bakumenko.
«In the structure of the cost price of poultry meat and eggs, expenses for compound animal feeding stuff occupy from 55% to 70%. And in the price of feed concentrates, 60% falls on grain. Therefore, growth of grain prices directly influences prices for eggs, poultry meat and pork,» the expert has said. Director General of the Ukrainian Agribusiness Club Volodymyr Lapa agrees with him, who considers that growth of prices for grain crops will lead to growth of prices for meat and dairy products in Ukraine already in autumn. To remind, in July, cost of wheat in Ukraine reached its maximum over recent year — only last month, its price on the domestic market grew by 13.5% tî USD 238/ton (VAT including), export — by 17.4% tî USD 310/tons (FOB the Black Sea). Domestic prices for corn rose by 8.4% tî USD 201/ton, export price — by 14% tî USD 278/ton. Growth of grain prices in Ukraine is a result of unfavorable weather conditions in main countries-grain exporters, primarily in the USA. This week, the U. S. Department of Agriculture upgraded its inflation outlook for foods from 2.5% tî 3.5% in 2012, as well as from 3% tî 4% in 2013, which is the highest index since the beginning of the world financial crisis of 2008 (5.5%). Growth of food prices may be caused by unprecedented drought since 1956, which comprised two thirds of the U.S. territory and became a reason for the growth of prices for corn and wheat. As a result, according to the ministry, prices for dairy products, eggs and meat will grow quicker than inflation, expenses for animal fodder grew due to the drought.
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