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Ukraine’s per capita pork consumption has dropped by 7 kg or 30% over the past few years. The past several years have been tough for the average Ukrainian consumer. Falling purchasing power took a heavy on consumption. In 2020, it stood at 15 kg/capita, compared to 45 kg in the European Union and 30 kg in Russia, the country’s Meat Industry Association estimated. Against the background of falling demand, domestic pork production has also been falling, Makhno said. The industry has an unprecedented low profitability. “The selling price in live weight by the end of 2020 and the beginning of 2021 was 38-40 hryvnia/kg (€ 1.40). In 2019, it amounted to 44.5 hryvnia/kg (€ 1.50).” Makhno added that the purchasing prices are falling despite a 20-40% jump in production costs. Most farms have a production cost of 40 hryvnia/kg (€ 1.40), which means that they operate either at zero profitability or suffering losses, Makhno said. This situation is likely to cause a further decline in production, which, in turn, is expected to hamper domestic consumption. More affordable pork imports from the Netherlands and Denmark are further hampering the Ukraine pig industry, Makhno said. Import supplies only slightly support domestic demand. However, in the future, Ukraine may lose most of its pig farms and become a major importer of pork in Europe.
9.1.9 Utilities sector news
Ukraine ranks 128th out of 189 countries in the World Bank’s Doing Business ranking in terms of getting connections to electricity networks. A new draft law supported by the Rada on first reading “will change the procedure for getting [electricity] and, critically, reduce it from 290 days to 97.”
The World Bank’s Board of Executive Directors approved on June 30 a programme to bolster Ukraine’s power sector and better integrate it into the EU power grid.
48 UKRAINE Country Report August 2021 www.intellinews.com