Meat Processing Industry in Ukraine is Suffering from Low Solvency of the Population

Meat Processing Industry in Ukraine is Suffering from Low Solvency of the Population

In recent years, the market of boiled sausages production has been showing negative dynamics. The reason is the reorientation of consumer preferences towards pork and poultry. 

As analysts of company Pro-Consulting mark, in 2013 the market operators have reduced the production in kind up to 169.3 thousand tones. Therefore, to compare the rate of production in the year 2011 it was at the level 188.9 thousand tones. At the same time, the manufacturers of today have the necessary reserve of production capacity to increase their production. It should also be noted that at present the market in question sells mainly products of Ukrainian plants. The share of imports does not exceed 1 %. The main suppliers are countries such as Belarus, Italy, Spain and Estonia. 

A detailed consideration of the market of boiled sausages revealed that there are a sufficiently large number of players, which produce approximately equivalent amounts of products. When choosing boiled sausages most consumers are guided by their experience. They choose and purchase sausages focusing on their flavour and quality of production (34 %). In addition, another important criterion for selecting boiled sausages is the cost of production (31%). The popularity of the trademark is less important (22 %). Under the category of consumers of boiled sausages are students and young people aged 18-25 years. It is revealed that when shopping the most important factor for them is the price than the quality of products.

The majority of consumers (about 65%) buy boiled sausages in the lower and middle price segment – up to 55 UAH/kg. The reason is the low income of population. Therefore, manufacturers rely heavily on such consumers and try various ways to reduce the price of manufactured products for such buyers.

In addition, there is a small seasonal prevalence of demand in the market. The demand-peak sales are at the end of December – the shopping period for New Year and Christmas holidays.

Source: www.meatinfo.ru