#Commentary of Ekaterina Martyanova on increase in food prices in Ukraine and its prospects as ‘agrarian empire’

Ukraine summed up the economic results of the year in the agro-industrial complex, which proved to be disappointing for the ‘future great agrarian empire’. So, the prices for basic food have grown by an average of about one third. But the most important thing is that Ukraine loses its position as an exporter of some agricultural products, including the one that traditionally was the country’s hallmark.

The Ukrainian media have headlines about the growing prices for almost all kinds of food. Thus, the price hike of vegetables varies from 17 to 73%. However, the rise in prices for vegetables has just begun and a significant price increase in late winter and spring awaits the Ukrainians ahead. The price for oil rose by 27.6%. And, of course, one of the leaders in this negative hit parade was meat, both pork and beef.

The Head of the Ukrainian Association of Trade Network Suppliers Alexey Doroshenko noted that prices for all social products grew during the year, except buckwheat groats and sugar, and the latter did not rise at the expense of import of buckwheat and shadow character of manufacture of sugar, the big part of which was made without paying taxes. This, in turn, leads to the fact that sugar producers reduce prices in the struggle for a buyer.

The loss of the status of pork exporter indicates the problems in the agrarian sector of Ukraine. This year, the volume of pork imports slightly exceeded its exports, but entropy under the laws of nature can only grow, so the collapse of Ukraine at all levels as a system will only continue. Yet, it holds its position in grain exports. But it should not be forgotten that Ukraine is in a zone of risky agriculture, and therefore, the harvest is constantly under threat of failure. Basically, the idea to place a bet on the agro-industrial complex in the country, which enters the zone of risky agriculture, is absurd.

Besides, it is necessary to recall the Ukraine’s unsuccessful attempt of export of dairy products. That is, summarizing the results, the ‘agrarian empire’ failed exporting dairy products and pork. What happens if the export of a product decreases? As a rule, these goods are redirected to a domestic market, saturating it and causing prices to fall. But what do we see in Ukraine? Steady growth of prices for cheese, oil and other dairy products, as well as meat.

The cost of the Ukrainian food basket has grown so much that it has already exceeded the prices in the Donetsk People’s Republic, though our young state is just starting to restore its agro-industrial complex. Now, bread and also chicken in Donetsk are 16% and 14% cheaper accordingly, than in Mariupol or Kiev.

The economy of Ukraine continues to decline, while the Donetsk People’s Republic, having done a titanic breakthrough in the restoration of agriculture, keeps food prices.

In the light of these facts what awaits the citizens of Ukraine in the future? Probably, shopping trips to buy cheap products in the DPR.

Ekaterina Martyanova, the DPR People’s Council deputy

The official website of the DPR People’s Council

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