Description
During the period of independence, Ukraine faced a few periods of significant disturbances in monetary sector accompanied by depreciation of the national currency. This monetary turbulence cannot be neutral with respect to certain industries, in particular – to agriculture. According to the economic theory, the impact of currency shocks on exports and imports works through the exchange rate pass-through to prices which differs across agricultural commodities.
Our ad-hoс analysis revealed that the depreciation of Ukrainian hryvnia leads the growth of exportable grain prices to a higher extent than prices of meat products, namely pork. Potentially, the rise of feed costs in this sector could decrease the competitiveness of domestic hog producers, depress the production volume and contribute to pork import.
The main goal of our research is to investigate the impact of hryvnia depreciation on the dynamics of meat-feed price ratio and import of pork during the fixed and floating exchange rate regime periods. Besides, we provide some considerations about the changes of this effect with respect to current economic context in Ukrainian agriculture.
