Food logistics restructuring could push prices in Ukraine up by 2.5%

Ukraine has sufficient food supplies to meet domestic demand, but Russian attacks on food infrastructure are forcing the country to restructure its logistics chains. This could lead to some increase in food prices, Agriculture and Food Minister Taras Vysotskyi said.

One of the key elements of the new model will be the decentralization of food storage and distribution. Instead of concentrating large volumes of products at individual warehouses, supplies will be stored in smaller batches, while direct deliveries from producers to retail outlets will be used more actively.

The approach is intended to reduce the risk of losing large volumes of food at once due to attacks and ensure uninterrupted supplies. Retail chains may have a smaller range of certain products available at any one time, but according to the minister, this should not be interpreted as a shortage.

The shift toward decentralized logistics will require additional transportation spending and could increase warehousing costs. According to the Agriculture Ministry, however, the impact on retail prices should remain limited, with food prices potentially rising by no more than 2.5%.

Vysotskyi also said Ukraine has sufficient storage capacity for vegetables. Production of key vegetables, particularly those traditionally included in the so-called borscht set, is expected to be sufficient to meet domestic demand.

Tags: agrifood, food, Ukraine, prices, logistics