A double blow: how the lack of vegetable storage facilities limits the supply of agricultural products and provokes price increases
26 November 12:41
ANALYSIS FROM 
“The harvest is not what is in the field, but what is in the barn.” Every year, many Ukrainian agricultural producers are forced to learn the truth of this folk wisdom on their own experience. This is especially true for those who are forced to solve the problem of crop preservation every year, as there is a critical shortage of vegetable storage facilities in Ukraine. We found out where this is felt the most and how this shortage affects prices and availability of products
This fall, many onion producers were forced to abandon harvesting and plow their fields. The reasons are obvious: a high, even record-breaking, harvest, low prices – they are even lower than the cost of growing, and finally, the inability to store the crop because there is a lack of vegetable storage facilities.
What and where does a producer lose?
Not only onion growers are experiencing a shortage of storage capacity. For example, every year, a significant portion of the Ukrainian potato harvest spoils due to the lack of proper storage conditions. This was discussed in an interview with the YouTube channel
“We have potatoes that have been grown and not stored. It is temporarily stored in places that are not quite suitable for this. It is mostly spoiled, sorted and thrown away. Because there is a catastrophic shortage of potato storage facilities in Ukraine,” said Olga Samoilichenko.
According to her, professional potato growing needs modern storage systems, because without it, the industry will not be able to develop.
Oleksandr Zakharchuk, Corresponding Member of the National Academy of Agrarian Sciences, Head of the Investment and Logistics Department of the National Research Center “Institute of Agrarian Economics,” notes that perishable vegetables are in the greatest need of high-quality storage.
“First of all, these are root vegetables – carrots and beets, onions and cabbage. This year, the situation with onions is the most problematic. The onion harvest was unprofitable. While in the spring the price of this vegetable soared to 30 UAH/kg, today farmers are forced to sell onions at 4-6 UAH/kg. In particular, this is due to the lack of conditions for its storage. There is also a shortage of storage capacity for potatoes and cabbage,” the expert said.
According to him, due to the lack of specialized storage facilities, farmers are forced to sell their products immediately after harvesting at low prices, even if there is a physical surplus of goods.
“Small and medium-sized farms, which produce most of the vegetables – about 90% – but are unable to store them, suffer the greatest losses. Crop losses due to the lack of storage facilities can reach 40-60% of vegetables and fruits,” the expert says.
But it’s not just farmers’ profits that are affected by the lack of sufficient storage capacity.
What and how consumers feel
Ukraine, despite its large harvests, is forced to import table potatoes from the European Union. And this happens every year precisely because of the lack of potato storage facilities. This is one of the examples mentioned in an interview with the YouTube channel
The lack of vegetable storage facilities also causes significant price volatility. As Oleksandr Zakharchuk, head of the Institute of Agrarian Economics, explains, without storage facilities, farmers are forced to sell their crops immediately, which leads to sudden price drops during periods of overproduction. Instead, the availability of reliable storage facilities helps smooth out seasonal price fluctuations. The lack of vegetable storage facilities can also lead to seasonal shortages of specific products. The situation is further complicated by the destruction of vegetable storage facilities due to military operations and damage to some crops. Oleksandr Zakharchuk continues.
“Scientists at the Institute of Agrarian Economics, for example, predict that in the winter of 2025/2026, there may be a decrease in the supply of high-quality white cabbage. In addition, there is a risk of limited access to quality carrots, as part of the harvest cannot be stored this season due to lack of capacity,” the expert notes.
And this is despite the fact that according to the estimates of the Institute of Agrarian Economics, in 2025, domestic farmers received a generally sufficient vegetable harvest to meet the needs of the population.
However, given that about 88% of vegetables – up to 7.5 million tons – are grown in Ukraine by households, the formation of their market supply will depend heavily on the volume of supply, logistics, and storage conditions. Inna Salo, Doctor of Economics, Chief Researcher at the Department of Agricultural Market and International Integration of the National Research Center “Institute of Agrarian Economics”, points out .
“The formation of vegetable prices is significantly influenced by the volume of supply, the cost of storage and transportation, increased electricity tariffs for industrial producers, as well as fuel prices. According to forecasts by scientists at the Institute of Agrarian Economics, a seasonal monthly gradual rise in vegetable prices is expected in winter – up to 10% compared to current prices, in particular due to additional storage costs. However, given the higher overall supply of onions, beets and potatoes, this year’s price increase is expected to be less noticeable,” says Inna Salo.
As of mid-November 2025, compared to the first decade of October this year, according to the Ministry of Finance of Ukraine, prices for borscht set vegetables have even slightly decreased. The reason is the expansion of their product offer. Beetroot fell to 10.55 UAH/kg (minus 0.9%), carrots to 11.53 UAH/kg (minus 4.7%), white cabbage to 10.79 UAH/kg (minus 9.9%), onions to 7.93 UAH/kg (minus 22.7%), and potatoes to 15.60 UAH/kg (minus 1.3%).
Who will build vegetable storage facilities and how
Ukrainian officials recognize that there is a problem with the lack of storage capacity for agricultural products. And how can they not, since about 35% of the vegetable harvest does not reach the consumer due to the lack of proper storage conditions.
Oleksandr Zakharchuk, Corresponding Member of the National Academy of Agrarian Sciences, Head of the Institute of Agrarian Economics, assessed both the current capacity of the agricultural storage infrastructure and the urgent need for its development.
“The total deficit of vegetable storage facilities now exceeds 1 million tons. These are the estimates of our institute. During the full-scale aggression of the Russian Federation in Ukraine, more than a quarter – more than 280 thousand tons – of the simultaneous storage capacities were destroyed. Given that the need for vegetable storage facilities is 1-1.2 million tons, the existing capacities of 165-170 thousand tons satisfy it only partially. Thus, to ensure the food security of the state, it is necessary to build modernized vegetable storage facilities with a capacity of 10-20 thousand tons at least in each region,” the expert notes.
Among the reasons that hinder large-scale construction, Oleksandr Zakharchuk names the high cost of projects: the construction of a vegetable storage facility for 10 thousand tons can cost more than UAH 100 million. And the factors that will facilitate the construction of vegetable storage facilities are state financial support and cheaper credit resources.
And among the tasks set out in the Cabinet of Ministers’ Action Program, which are expected to be achieved this year, is the implementation of a program of state support for the construction of storage facilities for vegetables, potatoes and fruits. As early as 2026, we can expect funds to be allocated for the construction of new storage facilities.
As Stepan Chernyavsky, Deputy Chairman of the Verkhovna Rada’s Agricultural Committee, recently explained, the new government program provides for the provision of non-refundable state aid in the form of grants specifically for the construction of modern vegetable storage facilities. The estimated annual amount of funding is UAH 200 million. These grants will be provided in the amount of up to 30% of the project cost, but not more than UAH 20 million, subject to co-financing by the recipient. The program will be designed for the construction of new vegetable storage facilities with a capacity of 3000 tons or more.
Author: Sergiy Vasilevich
