The cost of food products in Ukrainian stores may significantly increase due to attacks by the Russian Federation on the country’s energy infrastructure. Both manufacturing enterprises and the agricultural sector are suffering from power outages, which could lead to higher food prices for consumers.
This is reported by Finway
Increase in Production and Storage Costs
According to Denis Marchuk, Deputy Head of the All-Ukrainian Agricultural Council, the lack of electricity forces producers to use generators, resulting in additional financial costs. This is particularly relevant for elevators where the harvest is stored, as ensuring their power supply is critically important for maintaining product quality.
“If there is no electricity and no other alternatives, then, of course, generators represent an additional financial burden. Similarly, in elevators, maintaining the harvested crop without sufficient electricity will lead to increased product costs. If the market price is lower, but our production costs are higher, then profits will decrease accordingly,” the expert explained.
Forecast: Possible Price Increase of 20-30%
Marchuk emphasized that large enterprises are forced to use generators with a capacity of at least 100 kW, and their operation is quite expensive. If power outages last 10-12 hours a day, food prices may rise by 20-30%. This will be a significant burden for Ukrainian families and may lead to changes in consumption patterns.