Sausage Products Market: Assessment of the Situation and Looking for Ways of Development

    In Ukraine the share of sausages takes one-fifth of all meat processing products, and if we talk about the finished meat products, the share of sausages is more than 70% in their structure.

    For today, the situation at the sausage products market is quite stable, although its development is directly dependent on welfare, which in recent time doesn’t show its growth and remains in a deplorable condition. In despite of it, we can say that there is a significant prospect for growth in production of sausages in Ukraine, because an average Ukrainian consumes 53 kg of meat per year, with the physiological norm of 80 kg. Thus, the sharp problem of finding ways to further development the industry arises before the producers in this situation.

    It should be noted that after a sharp drop in production of sausages in 2009 because of an economic crisis (almost 19% from the previous year), there is a stable increase of more than 3% annually now, which makes it possible to claim about positive trends and growing prospects in this sector Ukraine”s economy.

    It is no doubt that among all 12 kinds of sausages which are presented in the Ukrainian market, most consumers prefer cooked and semi-smoked sausages, the share of which is more than 80% of the total sausage products market.

    An important condition for leadership in the sales of sausage products is the stability of product quality. In 2011, a dozen of key players has provided more than 57% of the total production in this segment. The five leaders of the domestic sausage products market in terms of volume of production includes such companies as “Meat Factory” Favorit Plus” Ltd., JSC “MHP” Group “Globino”, JSC Meat-processing plant “Yatran” and the Corporation “Industrial Union of Donbass”.

    In the current situation, the tough competition in the sausage products market determines the range, quality and control of pricing. A certain excess of sausages in the stores of major trade retailers forces the manufacturers to produce high-quality branded products, find new niches and create innovative products.

    Only a deep understanding of the situation, a professional market analysis to accurate planning of production, the vision of its place in the sector of economics, can help today”s producers of sausage products to withstand tough competition and strengthen its position in this difficult time.

    It was with this goal the ProAgro Company prepared the Statistical Report “Ukraine: Sausage Products Market”, which is a compilation of statistical data to adequately evaluate the market, both in quantitative and qualitative terms, and also gives a visual representation of the most important of them.

    Statistical report shows the core indicators of Ukrainian market of sausge products for the period 2006-2011, from raw materials to manufacturing industry, and foreign trade in the detailed division by type of products.

    Besides, there is presented the balance of the market, which reflects the consumption of sausage products in the dynamics, shows the dynamics of wholesale and retail prices for these products, determined the position of the leading operators of sausage products market in the context of major kinds of product, etc. The Report also presents statistical data on imports of equipment for meat processing.