Farmers again warn about rising prices of food products

The All-Ukrainian Agrarian Council warns of the possibility of further price increases for food products. This is explained by the difficult conditions faced by Ukrainian farmers. As the Deputy Chairman of the All-Ukrainian Agrarian Council, Denis Marchuk, noted, due to the possibility of power outages returning, producers will use generators, which significantly increases their costs. The energy produced by the generators costs up to UAH 30 per kilowatt, so an increase in product prices is inevitable, he noted.

Also, the representative of the Council added that among other factors that affect the price of products are, in fact, war, inflation, the lack of a sufficient volume of labor and the increase in the cost of fuel, as well as in some places unfavorable weather conditions. According to him, losses of the soybean and sunflower crops have already been recorded, which will reduce the supply of Ukrainian oil crops for export. Losses of the export potential of corn due to the heat during flowering may amount to 8-9 million tons, which will also force a review of the forecasts of the total export of agricultural products. All this can lead to a decrease in foreign exchange earnings.

Let us note as an example that in Ukraine for some time there has been a constant increase in the price of bread. A number of factors affect prices. It is likely that most bakeries will close and there will be little supply of the product. During the two summer months, the price of flour jumped by as much as 50% and the trend will continue in the future. In addition, in addition to the increase in the cost of raw materials, the costs of electricity, logistics, packaging materials and more are also increasing.

In this regard, it is worth recalling the words of Taras Vysotskyi, who noted that the shortage of electrical energy can affect the cost of a significant group of goods. The pessimistic scenario of entrepreneurs in the processing industry is an additional 10% of the cost. The optimistic scenario is from 3 to 5% in addition to current prices. The pessimistic scenario is based on calculations when almost all the time enterprises will be forced to work on generators due to restrictions, that is, the cost of production will increase accordingly. The optimistic scenario – a 3-5% increase in prices is based on the fact that until October inclusive, most of the time enterprises will work by connecting to the usual network power.