The situation in Ukraine’s agricultural sector has dropped to its worst levels in the last 10 years

The situation in Ukraine’s agricultural sector in 2022-2023 has declined to its lowest levels in the past decade.

This information comes from the International Foundation for Disaster Risk Reduction and Recovery Organizations, which conducted a study on the industry.

The main reasons for this downturn have been limited logistical capabilities, the devaluation of the hryvnia, and an increase in the cost of material and technical resources.

Logistical complications in importing resources combined with high energy prices in 2022 resulted in additional expenses for fuel, fertilizers, and plant protection agents.

Furthermore, due to the devaluation of the national currency, the production cost increased (land rental, labor costs, tax payments, etc.).

Key factors in the upcoming period will be the price dynamics in export markets, the cost and availability of energy resources, the ability to export products through the Black Sea and Eastern European countries, as well as weather conditions affecting crop yields.