Ministry of Agrarian Policy assessed possible food price increases due to new logistics

Ukraine has sufficient food stocks to supply the domestic market, but due to Russian strikes on food warehouses, businesses and the state are forced to restructure logistics. Additional transportation and storage costs may affect prices, but according to the Ministry of Agrarian Policy, the price increase should not exceed 2.5%.

This was announced by Minister of Agrarian Policy and Food Taras Vysotskyi on "Suspilne".

According to him, one of the main directions of the new supply model is moving away from concentrating large volumes of products in one place. Food will be stored in smaller batches, and some goods will be delivered directly from producers to points of sale.

"It is important for us to decentralize this approach and prevent the possibility of large-scale simultaneous destruction of large volumes of products," Vysotskyi noted.

Assortment in stores may temporarily decrease

The restructuring of supply will also affect the operation of retail chains. According to the minister, stores may simultaneously keep smaller stocks of certain product types and have a somewhat narrower assortment.

At the same time, the Ministry emphasizes that this is not evidence of food shortage. The changes are primarily related to reducing the risks of losing large batches of goods in the event of Russian attacks.

New logistics may add up to 2.5% to prices

The decentralized model will require more transportation and may change storage costs. These factors can partially pass into the final cost of products.

According to the Ministry's estimate, the extra increase in food prices due to logistics restructuring should not exceed 2.5%.

Vysotskyi also stated that Ukraine has sufficient capacity to store vegetables. According to ministry forecasts, main vegetables, including borscht set products, will be grown in volumes sufficient for domestic consumption.

Earlier, Vysotskyi estimated the scale of losses in retail food logistics at about 90%. According to him, Russian strikes on large warehouses and distribution centers are forcing retail chains to switch to direct deliveries from producers, alternative routes, and "just-in-time" work. The minister also clarified that 90% is an approximate estimate of overall retail logistics losses, not an exact figure of destroyed warehouse areas. Such restructuring makes supply more complex and expensive, though the Ministry does not expect a systemic shortage of basic products.

Based on materials from: Ministry of Agrarian Policy and Food of Ukraine