In Ukraine, food prices continue to rise. In particular, for bread, meat, dairy products. Why is this happening and can rise of prices be prevented? An expert on agricultural policy and the UAC Deputy Chairman (UAC) Denys Marchuk shared his opinion with the publication “Comments”.

The upward trend in food prices in Ukraine (bread, meat, dairy products) has moved on from the previous year to this one and will continue to do so. Thus, in 2020, bread has risen in price by 7% -10% and its price will increase by about 4-7% by spring in addition. In monetary terms, a traditional bread loaf will be cost UAH 0,5 to 0,8 more. The cost of bread rise because of wheat prices rise, but this is a global trend.

As for pork, its cost has also increased slightly - from UAH 100-120 to 130 per kilogram. At the same time, domestic pig farmers have a crisis, it began last year - purchase prices for live pork in the domestic market have fallen. We have this situation is because a lot of imported pork has appeared on the market. However, a larger increase in pork prices is unlikely to happen, because we need to pay attention to the solvency of Ukrainians.

Also in Ukraine, due to lack of raw materials, dairy products become more expensive. Last year for the first time, Ukraine became a net importer of dairy products (when milk imports outweighed exports). The shortage of raw materials has been caused by a rapid decline in livestock in the industrial sector, which provides more than 80% of milk for processing. So, last year Ukraine lost 1.5-2 thousand heads every month.

We can prevent price increases. A few months ago, the UAC initiated the idea of the value added tax (VAT) rate reduction in the from 20% to 14% on socially important products - milk and dairy products, including butter, cheese of all kinds; beef and pig meat; sausages and offal from relevant meat; beet sugar. This step will help to reduce the price of these products and increase the purchasing power of Ukrainians.