Rising logistics costs are making Ukrainian agriculture unprofitable – Deputy Minister of Agricultural Policy says

Rising logistics costs are rendering Ukrainian agriculture unprofitable.

This information reported according to the First Deputy Minister of Agrarian Policy of Ukraine, Taras Vysotsky, in an interview with the BBC.

He stated that the country’s agriculture sector is approaching a crisis due to significantly increased expenses, especially for the transportation of agricultural products.

He mentioned that costs have sharply risen while global prices have fallen, making the export of many agricultural products unprofitable for Ukrainian farmers. Unless these expenses can be reduced, such as by increasing exports via sea routes, many producers face the risk of bankruptcy. Vysotsky highlighted that this threat poses a risk to both the Ukrainian economy and global food security.

Earlier, several Ukrainian farmer associations indicated that they could face losses exceeding $3.2 billion this year. They pointed to various factors, including the increased costs of logistics, as well as rising fuel prices, fertilizers, and spare parts.