Ukraine is facing an impending rise in food prices as ongoing power outages disrupt key agricultural operations. The escalating crisis threatens livestock and feed industries already suffering from economic hardship.
According to Yulia Samoylik, an economist, meat and milk prices could soar by a third in the coming months as a result of these blackouts, contributing to higher feed prices. This alarming projection was made during a recent interview with the local news station, Suspilnoye.
In recent weeks, Ukraine has been hit by consistent blackouts caused by drone and missile attacks targeting energy facilities. With rolling cuts lasting as long as 14 hours per day and winter’s chill setting in, the energy crisis is set to worsen.
Operational Costs Surge Due to Diesel Dependency
The production of animal feed is among the sectors most negatively impacted by these power outages. “Grain grinding, compound feed production, and storage all depend on electricity. Extended outages mean farms incur additional costs,” stated Samoylik.
To counter the blackouts, manufacturers are compelled to utilize diesel generators, resulting in increased costs for fuel, maintenance, and logistics—expenses that must be integrated into overall production costs.
Escalating Prices Across the Supply Chain
Ukrainians are already feeling the squeeze as the prices of certain livestock products in supermarkets have increased by UAH 15 to UAH 25 (€0.3 to €0.5) per kilogram.
These increases are not confined to feed production; costs are inflating across the entire supply chain. “Meat processing facilities, including sausage factories and smokehouses, also rely heavily on electricity. Without a stable power supply, operations are severely disrupted,” added Samoylik.
This ongoing price inflation in the food market is beginning to erode the purchasing power of the average Ukrainian consumer.
Declining Livestock Numbers Signal Broader Crisis
Concerns regarding the repercussions of rolling blackouts on the agricultural sector are not new. Earlier this month, the Ukrainian Agricultural Rada, a prominent farmers’ union, issued a warning about the chaotic state of the livestock and feed sector.
The union reported a 7% decline in cattle and pig populations since the beginning of the year, which is diminishing demand in the feed market. Additionally, a seasonal uptick in poultry feed prices during the winter months is further amplifying these pressures.
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