Ukraine anticipates surge in food prices by winter

In Ukraine, as autumn begins, the prices of food have started to go up. However, they haven’t reached their highest point yet, which is anticipated during the winter months.

According to Denis Marchuk, the Deputy Chairman of the All-Ukrainian Agrarian Council, food prices could rise by an additional 5-10% during this period. Food prices are affected by the seasonal variations, often making winter prices higher than those in summer. This isn’t solely due to the lack of available produce during winter months. Livestock products also see price hikes as colder weather reduces milk production and egg laying.

Denis Marchuk noted a surge in prices for dairy and meat products since late August, influenced by logistics, increased petroleum prices and a decrease in significant milk production. Marchuk foresees a continued rise in food prices until mid-December due to existing contracts with domestic and export markets. However, afterward, prices might slightly decrease once these contracts conclude.

Yet, certain products may maintain high prices until spring. For instance, egg prices might stay elevated until mid-spring until more eggs enter the market from individual producers. Overall, food prices will likely peak during the winter months and might stay elevated until spring, possibly increasing by an additional 5-10% compared to the current rates. Additionally, approaching New Year holidays typically drive up food prices for celebratory feasts. This year despite the ongoing conflict, is expected to follow this trend.