Farmers raise prices due to the return of blackouts
20 August 2024 13:10
Ukrainians have been warned of further food price increases due to the difficult conditions faced by Ukrainian farmers. This was stated by Denis Marchuk, Deputy Chairman of the All-Ukrainian Agrarian Council (AAC), according to "Komersant Ukrainian"
“Blackouts are coming back, and producers will use generators, which significantly increases their costs. The energy produced by generators costs up to UAH 30 per kilowatt, so an increase in product prices is inevitable,” Marchuk said.
Among other factors affecting the rise in food prices, he named the war, inflation, lack of sufficient labour and increased excise taxes on fuel.
The expert also touched upon the issue of the harvest, emphasising the unfavourable weather conditions. Thus, the frosts in early spring and the ongoing and periodically intensifying drought have had a negative impact on the soybean and sunflower harvest. This will reduce the supply of Ukrainian oilseeds for export.
“Losses of corn export potential due to the heat during flowering may amount to 8-9 million tonnes, which will force us to revise the forecasts of total agricultural exports from 60 million tonnes downwards. This will lead to a decrease in foreign exchange earnings, but will not affect Ukraine’s food security,” the UAC Deputy Chairman stressed.
According to him, the maritime humanitarian corridor continues to operate, and since 1 July, more than 5.5 million tonnes of grain have been conditionally exported, which is ahead of last season.
“However, the exports will also be affected by the further situation at the frontline,” Marchuk added.
