At the end of January – beginning of February 2025, a stabilization of food prices is anticipated, and some products may decrease in cost.
This was reported by Dmitry Solonchuk, a member of the Committee of the Verkhovna Rada on Agrarian and Land Policy.
He explained that the sharp increase in product prices was observed before the holidays due to the influence of the dollar exchange rate and rising costs for producers related to energy resources, transportation, and equipment purchased in foreign currency.
Reasons for the price increase include:
- Fluctuations in the dollar exchange rate – many producers rely on the import of fuel, equipment, and energy resources, which directly impacts the production costs.
- Increased demand before the holidays – traditionally, demand for food rises during the New Year and Christmas, contributing to temporary price increases.
- Lack of adequate infrastructure for vegetable storage – the shortage of storage facilities forces farmers to sell their products immediately after harvest, leading to price hikes due to intermediary involvement.
Solonchuk pointed out that the situation is exacerbated by the ongoing shortage of sufficient vegetable storage facilities in Ukraine. This results in an uneven distribution of income between producers and intermediaries who set market prices.
One of the main reasons for the instability in vegetable prices is the lack of storage space.
For instance, farmers grow potatoes but are forced to sell them for 8-10 UAH per kilogram, as they lack the capacity for long-term storage. Due to numerous intermediaries, the price for consumers can rise to 30-35 UAH per kilogram," the expert explained. This leads to significant markups and unfair income distribution: the producer receives the minimum while the bulk of the profit goes to resellers.
According to the expert, a decrease in prices for several groups of products is expected in the near future, particularly:
- Eggs – a significant reduction in price is possible due to market stabilization after the holidays.
- Dairy products – the cessation of further price increases and the establishment of stable price characteristics.