As the war persists in Ukraine, government officials are watching several key areas.
During the martial law period, Ukraine instructed the regional military administrations, together with the National Police, the State Food and Consumer Service, and the State Medical Service, to oversee retailers’ prices for several goods, including wheat flour, pasta, wheat loaves, bread, buckwheat, and oat groats. According to the Cabinet of Ministers of Ukraine, this list also includes pork, beef, poultry (chicken carcasses), milk, butter, sour cream, eggs, sunflower oil, and sugar. In addition, the retail prices of white cabbage, onions, beets, carrots, potatoes, ethanol (96% solution), domestic non-steroidal anti-inflammatory and antibacterial drugs, A-95 gasoline, as well as diesel and liquefied gas will be monitored. The term monitoring means that authorities will punish sellers who sharply increase prices.
Egg Producer Reports Significant Losses
Agroholding Avangard, one of the leading producers of chicken eggs in Ukraine, reports significant losses in production capacity because of Russian aggression. Several key poultry farms have been shut down and de-energized. Birds have been left without food and doomed to extinction, and financial losses currently reach UAH 1.5 billion (~$50 million USD).
A minimum of 1 million birds could be lost. The inability to dispose of millions of dead birds poses a threat of environmental disaster.
Planting to Begin Where Possible
Minister of the Agrarian policy of Ukraine conceded that the 2022 sowing campaign will begin where possible considering hostilities. This means that all previous forecasts of supply/demand/export are void. Also, the minister admitted there are problems with inputs like fuel, seed, and fertilizers.
The Cabinet of Ministers of Ukraine has added new items to the list of critical imports for Ukraine. In particular, it has added vegetable oil, grain, and ready-made food products. Nitrogen, phosphorus, and potassium were also added to the list. Whey, wheat, malt, coconut and rapeseed oil, fats and oils, margarine, confectionery made of sugar and cocoa beans, and ready-made foods for infants and young children are also on the list.
Serious Logistical Problems Leads to Looting
Due to the failure of the Russian plan for a rapid offensive, the Russian army is forced to change tactics. Currently, Russia is unable to provide units with fuel, food, equipment, ammunition, and rotate its troops. Russian troops were instructed by their commanders to move to “self-sufficiency” until further orders are received due to serious logistical problems. With this decision, the Russian army has legalized looting. The occupiers were allowed to take everything they needed from the local population, robbing warehouses, shops, and pharmacies. This was reported by the Main Intelligence Directorate of the Ministry of Defense of Ukraine.
Iurii Mykhailov is a Ukrainian economist and agricultural journalist who’s been reporting from Kyiv on the war between Russia and his country for Successful Farming.