This is evidenced by the recent “borsch index” from BRDO experts.
When calculating the index, we use the data of Minfin, the portal on finance and investment, on the average monthly prices for products. Unfortunately, at present we cannot confirm the relevance of the index for the regions of Ukraine that are in the zone of active hostilities.
How did the war affect the prices of basic products?
UAH 95 – that’s how much a portion of borscht for four people, prepared according to a traditional recipe, will cost on June 3, 2022. Compared with February 24, 2022 – UAH 81.84 – the price increased by 16.09%.
All borscht ingredients, except for potatoes, rose in price to varying degrees: from a slight 7.7% to a significant 22.56%.
The price of cabbage increased the most. Next on the price scale – pork, carrots and beets.
The only vegetable whose price has decreased is potatoes (-20.11%). Sour cream became slightly more expensive (+ 7.7%).
Infographics допомо will help you to get acquainted with the dynamics of product prices in more detail
What does this data tell us?
Food prices vary considerably depending on the region and even the trade network, as today about 30% of the cost of production is logistics costs, which have risen sharply due to fuel shortages, difficult delivery routes and lack of vehicles.
According to Yulia Korneeva, chief economist of BRDO, the seasonal decline in vegetable prices should not be expected. The suspension of vegetable imports from abroad due to the blockade of Ukrainian ports, as well as the suspension of supplies of vegetable products from the eastern regions creates significant deficits in the domestic market of Ukraine, which causes significant inflationary pressures. The rising cost of fertilizers and their shortage in the market also do not add optimism.
What happens next?
The cost of dairy products will continue to grow due to the influence of a number of factors:
- reduction of the supply of quality raw materials and as a consequence of the increase in purchase prices for raw materials;
- significant difficulties in logistics deliveries from abroad of imported packaging in combination with the growth of its value due to the devaluation of the hryvnia;
- rapid growth of costs for the production and storage of dairy products due to rising energy prices;
- rapid growth of logistics costs.