Analysts at Pro-Consulting prepared a study of frozen and chilled beef Ukraine

On the basis of statistical data of livestock in Ukraine, it can be argued that the total number of cows from year to year is rapidly decreasing. The main reason for that is the subject and continues to influence the gradual cutting of cattle in Ukraine - a decline in demand for beef and veal from the meat processing enterprises.

Regarding the origin of beef, Ukrainian consumer for many years has the opportunity to buy domestic products. Virtually all of the offered assortment of beef and products from it is the result of Ukrainian factories and slaughterhouses. However, recently there has been a slight increase in the volume of imports of beef that triggered by high prices in the domestic market.

Due to the fact that the volume of beef production in Ukraine has decreased, while the number of imported products does not demonstrate the impressive volume, the capacity of the market does not stop the decline. In 2010 there was a decrease capacity of the beef market in value terms by 23.2%. In 2011 the figure decreased, so in real terms it equaled 59.8 thousand tons of beef.

However, in 2012, thanks to maintain production of the product (69.3 tons), the growth rate of the market capacity was not such low levels as in the previous year (-5.5%).

The structure of the meat market shows that the leading position it occupies poultry. Due to the fact that the cost of a kilogram of chicken 2.5-3 times less than one kilogram of pork or beef, the demand for it, due to the low purchasing power of Ukrainians is traditionally high. In addition, the domestic production of sausage products are increasingly dominated by meat birds in the form of meat. Beef has the smallest market share, which is 4.4%. If the standard of living of the population does not increase, the consumption of poultry meat in the future will only increase.

Meat refrigerated prevails in the Ukrainian market, its share of the results of 2012 was 78%. The bulk of the frozen meat in the market is produced abroad. Moreover, not all imported frozen meat is sold on the domestic market, and its lion's share goes to re-export.

As of December 31, 2012 chilled beef market in Ukraine has been concentrated in the Vinnitsa (26%), Kirovohrad (8.3%), Poltava (7.6%), Sumy (7.2%), Zhytomyr (6.9 %), Cherkasy (6.4%) regions. The total share of these regions in total amounted to 62.4%.

Vinnytsia region is one of the most important agricultural regions of Ukraine, it ranks the first place for the production of grain and sugar beets. The main specialization of agricultural enterprises of all forms of ownership of livestock is the production of meat and milk. Therefore, Vinnytsia region occupies the largest market share in the chilled beef.

 

Further cutting cattle in households will curb the decline in the production of beef and veal at 2-3% per year, which will in turn be reflected in the baseline consumption of the product population.

This analysis allows us to trace the main trends in the development of this market, and learn about the prospects for its development in the coming years.

Analytical study of the Pro-Consulting will help you not only to correctly plan your business, but also to avoid mistakes in the future and make the most effective solutions.