Economics and management of national economy

Consumption of meat and meat products in Ukraine: current situation and prospects

Economic Annals-XXI

Economic Annals-ХХI: Volume 150, Issue 3-4(2), Pages: 25-28

Citation information:
Mudrak, R., & Muzyka, B. (2015). Consumption of meat and meat products in Ukraine: current situation and prospects. Economic Annals-XXI, 3-4(2), 25-28. https://ea21journal.world/index.php/ea-v150-06/

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Ruslan Mudrak
D.Sc. (Economics),
Рrofessor,
Head of the Department of Marketing,
Uman National University of Horticulture
1 Institutska Str., Uman, 20305, Cherkasy region, Ukraine
mrp1974@ukr.net

Boris Muzyka
PhD Student (Economics),
Uman National University of Horticulture
1 Institutska Str., Uman, 20305, Cherkasy region, Ukraine
myzb@mail.ru

Consumption of meat and meat products in Ukraine: current situation and prospects

Abstract. Introduction. The indices of the essential foodstuff consumption, in particular meat products, have always been one of the key indicators of living standards of the population. Ukrainian economy has hard times, despite this the production of products in meat sector of agrarian economy increases.

Purpose. The objective of the article is to determine the current capacity of the domestic market of meat and meat products, to establish the role of meat sector in the agriculture of Ukraine for the domestic demand satisfying, to analyze the factors influencing the demand for relevant products, etc.

Results. Due to the dynamics of indicators of appropriate food balance, we identified that this production is oriented mainly to the domestic market, which is an important factor of not only social, but also economic stability. Only economics with strong domestic market can be resistant to cyclical volatility of global markets.

The dynamics of consumer prices has been derived in the article based at the structure of the market of meat and meat products, the volume of the corresponding supply and demand, etc. Consumer prices increase is another actual problem that needs constant attention because of its social component.

Operational monitoring of the situation at the national market of meat and meat products indicates the existence of a number of unsolved problems and unanswered questions. First of all, it is about achieving rates of consumption, the economic availability of products, consumer preferences, the role of imports and exports in the internal market, the mechanism of market prices forming.

Conclusions:

1) Since 2001, the consumption of meat and meat products by the population of Ukraine has been growing, but has not reached the level of this indicator in 1990 yet (68 kg per person a year). Since 2004, the amount of the consumption of meat and meat products is over the production capacity. The deficit at the domestic market may be covered only by imports;

2) The main factor of changing the amount of consumption of meat and meat products is the size of the salaries of Ukraine’s population adjusted to CPI. In second place, there is the presence and the amount of the deficit of relevant products. Thus, at this stage, the export of meat and meat products is a factor of the deficit emergence. The solution of the problem should be considered in the sphere of the animal agriculture sector intensifying;

3) From 2001 to 2013, there were no price demand elasticity for meat and meat products;

4) The analysis of the national market of meat and meat products allows suggesting that its price is unfair because of the presence of cartel agreement in the market. To prevent price fixing that leads to restrictive practices in the market of meat and meat products, the state needs to speed up the work and to increase the power of the Antimonopoly Committee of Ukraine.

Keywords: Meat and Meat Products; Consumption; Deficit; Exports; Imports; Income; Price Index; Demand Elasticity; Monopolism

JEL Classification: D12; D42; L40; L66

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Received 25.03.2015

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