Ukraine reduced potato production by 18% in 2024, which amounted to minus 4 million tons in terms of the entire country, First Deputy Minister of Agrarian Policy and Food Taras Vysotsky said at the Ukraine Media Center on Friday.
“We must remember that the 2024 harvest is good, but it is less than last year’s. The decisive factor behind the rise in food prices is a 10% reduction in the harvest, which is a lot. Still, certain imbalances have arisen,” he said.
As an example of such an imbalance, Vysotsky cited potatoes, whose harvest was severely affected by drought, which led to an 18% decrease in gross production, or 4 million tons.
“This is one of the factors behind the rise in potato prices. At the same time, we see that it has been at the level of 25-30 UAH/kg for three to four weeks and has not changed. We believe that it will not change further. There is no reason for potatoes to cost 50 UAH/kg,” the First Deputy Minister assured.
He explained that the current price of 25-30 UAH/kg is enough to cover the cost of growing the crop, even with a reduction in yields. This price is enough to make it profitable for supermarkets and distillers to start importing.
“We have an open market: we export the surplus and start importing products when there is a shortage. When the price of potatoes reached 25 UAH/kg, we started importing from Poland. These were small volumes compared to our production. But these several dozen tons were enough to stabilize and stop the speculative price increase,” explained Vysotsky.
He stated that the current price for potatoes is realistic. Consumers have no grounds or hopes for its reduction due to a significant reduction in production.
In addition, the Ministry of Agrarian Policy predicts a rise in potato prices by spring 2025 due to the increase in farmers’ expenses for storing the crop. The price may rise by 10-15 UAH/kg, which will be 3%. However, this allows government officials to claim that potatoes will not cost 50 UAH/kg.
Vysotsky called buckwheat and other cereals, which currently cost 25-30 UAH/kg, an alternative to potatoes.
He also noted that meat prices remain affordable in Ukraine: pork has fallen in price compared to last year, and chicken meat is in line with last season. Dairy products have risen in price due to rising prices on the global market.
“We have to realize that we have inflation in our country. It is currently at 8%, and it can reach 10%. When there is such inflation, it cannot but affect products, which have also risen in price by 10%. If we look at the forecasts, we will see that the average salary is growing. If everything continues to happen in sync, the consumer will not feel a heavy burden as a result,” summarized the First Deputy Minister of Agrarian Policy.
