Falling feed prices have become a strong incentive for even non-core businesses to invest in pig breeding. Profitability of investment in growing pigs in 2022 will quickly pass the mark of 100% for the year.
This was said by the executive director of the Meat Industry Association Mykola Babenko, reports ProAgro Group, referring to Meatnews.
According to him, pig breeding in conditions of blocked grain export means not only guaranteed profit, but also return of working capital to the business, which is engaged in crop farming without loss of profitability by crops.
Lower feed prices, however, do not mean a corresponding decrease in pork prices.
“Prices are rising because of hog shortages. Indeed, feed has fallen in price by almost 50% in Ukraine in Q2 2022, while hog prices have risen by 20% and are likely to rise further. In Ukraine, pork prices are growing because of the shortage of pigs, in the world – because of rising prices for feed,” – Babenko explained.
At the same time, he noted that world pork prices in the 2nd quarter of 2022 increased by more than 50% – the largest increase among all types of meat.
