Farmers are forced to raise prices: which affects the price of products

Ukrainian consumers were warned about the inevitable increase in food prices caused by the difficult conditions in which farmers are currently working. This was announced by the Deputy Chairman of the All-Ukrainian Agrarian Council (VAR) Denis Marchuk.

One of the main reasons for the price increase is the return of blackouts, forcing producers to use generators. "The energy produced by the generators costs up to 30 hryvnias per kilowatt, which significantly increases production costs. This, in turn, makes an increase in product prices inevitable," Marchuk said.

In addition, the difficult situation caused by the war, inflation, lack of labor and the increase in fuel excises also affects the increase in the price of products. All these factors put pressure on farmers, forcing them to raise prices to stay afloat.

This year's weather conditions also had a negative impact on the harvest. Marchuk noted that the spring frosts and prolonged drought seriously affected the soybean and sunflower harvests, which will reduce export supplies of Ukrainian oil crops.

According to VAR forecasts, due to the intense heat during the flowering of corn, the loss of its export potential may amount to 8-9 million tons. This will lead to a downward revision of the forecasts of the total export of agricultural products from 60 million tons.

Despite these losses, Marchuk assures that Ukraine's food security will not be under threat. However, the decrease in export potential will inevitably affect the country's foreign exchange earnings, which may affect economic stability in the near term.