The European Association backfired on Ukraine with rising prices for milk and meat
The free trade area with the European Union is one of the reasons for the acceleration of inflation in Ukraine. This happened due to a sharp increase in the export of meat and dairy products from Ukraine to EU countries against the background of a decrease in its production in Ukraine.
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Ukrainian economist Viktor Skarshevsky draws attention to this trend in his blog.
“So, the export of pork to the EU countries increased by 2,6 times (over 9 months of 2017), cattle meat - by 39%, butter - by 2,7 times, etc. At the same time, pork production in Ukraine over the same period decreased by 1,6%, veal - by 0,1%, and milk production - by minus 1,8%. Let’s add to this the reduction in the number of pigs by 8,3% and cows by 1,9%,” writes the expert.
He points to a paradoxical situation: Ukraine produces less and less, but at the same time increases exports.
“It is this “paradox” that led to the fact that prices for meat and dairy products in Ukraine increased by 9% over the first 2017 months of 30, which, in turn, significantly influenced the increase in the overall inflation index,” Skarshevsky concludes.
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