Blackouts are putting pressure on prices: what will happen to the cost of vegetables and fruits in Ukraine
1 February 20:11
Power outages are already affecting food prices in Ukraine, including vegetables. Due to power interruptions, businesses are forced to look for alternative energy sources, which directly affects the cost of production.
In a comment to RBC-Ukraine, Maxim Gopka , an analyst at the Ukrainian Agribusiness Club, explained what is happening on the market and what to expect next, according to "Komersant Ukrainian".
More expensive energy means higher prices
As the analyst explains, the greatest pressure on prices comes from the use of generators and battery systems. In addition, the rise in logistics costs also has an impact.
“Strict power outage schedules are putting direct pressure on store prices. Businesses are forced to switch to more expensive energy from generators, which triggers a chain reaction of price increases,” Gopka notes.
Who will suffer the most
According to him, the most vulnerable are vegetables that need to be stored in refrigerators and require a stable power supply — primarily potatoes, onions, carrots, and cabbage. Manufacturers include additional costs for fuel, logistics, and temperature control in the final price.
We would like to add that, according to the Ministry of Finance, prices for borscht ingredients have risen over the month: white cabbage costs 12.62 hryvnia (up 3.10 hryvnia), onions cost 9.33 hryvnia (up 1.5 hryvnia), beets cost 11.97 hryvnia (up 1.5 hryvnia), carrots cost 14.67 hryvnia (up 3.7 hryvnia), and potatoes fell in price by 10 kopecks to 16.35 hryvnia.
What to expect next
The analyst emphasizes that if power outages continue, prices may continue to rise, especially during the winter. At the same time, stabilization of the power grid or expansion of business support programs could curb price increases.
What is the situation with fruit?
During the month, apples became significantly more expensive in Ukraine, with domestic apples costing an average of 44.26 hryvnia per kilogram, according to the Ministry of Finance. For comparison, at the end of December, the price was 33.75 hryvnia. Oranges rose in price by only 4 hryvnia over the month, to 80 hryvnia, while bananas fell to 61.67 hryvnia, which is 1.27 hryvnia cheaper.
“The immediate forecast for consumer prices for imported products is optimistic, although global prices may be under pressure. We will continue to monitor the markets of the Middle East, the CIS countries, and the EU. But there will be no situation where a familiar imported product, such as bananas, disappears from our stores,” says the analyst.
