The Ukrainian Agri Council (UAC) warns of further rise in food prices due to the difficult conditions faced by Ukrainian farmers. During the “United News” telethon, Deputy Chairman of the UAC Denys Marchuk explained how economic and climatic factors affected the production and export of agricultural products.

“Blackouts are coming back, and producers will use generators, which significantly increases their costs. The energy produced by generators costs up to UAH 30 per kilowatt, so an increase in product prices is inevitable,” said Denys Marchuk.

Among other factors affecting the rise in food prices, he mentioned the war, inflation, lack of sufficient labor force and increased excise taxes on fuel.

The expert also touched upon the issue of the harvest, emphasizing unfavorable weather conditions.

“The frosts in early spring and periodically intensifying drought have had a negative impact on the soybean and sunflower harvest. This will reduce the supply of Ukrainian oilseeds for export. Losses in corn export potential due to heat during flowering could amount to 8-9 million tons, forcing a downward revision of the predictions of total agricultural exports from 60 million tons. This will lead to a decrease in foreign exchange earnings, but will not affect Ukraine's food security,” the UAC Deputy Chairman emphasized.

The success of the Armed Forces will be an important factor for Ukraine's export performance.

“The maritime humanitarian corridor continues to operate, and since July 1, more than 5.5 million tons of grain have been conditionally exported, which is ahead of last season. However, exports will also be affected by the further situation at the frontline,” added Denys Marchuk.