Energy crisis, logistics and labor shortages remain key risks for Ukraine’s agri-sector

Russia’s full-scale war continues to create systemic challenges for Ukraine’s agricultural sector. Among the main issues are power outages, complicated logistics, labor shortages and rising costs, ProAgro Group reports.

According to Deputy Minister of Economy, Environment and Agriculture Taras Vysotskyi, shelling of port infrastructure and logistical restrictions directly affect the cost of agricultural production.

“The war has brought serious challenges for the agricultural sector. In addition to the energy crisis, these include complicated logistics, attacks on port infrastructure and, consequently, higher transportation costs,” Vysotskyi said.

Labor shortages remain another critical problem.

“People are a critical factor. Many have gone to defend the country, while others have emigrated or were forced to relocate. There is a persistent shortage of highly qualified workers,” he explained.

Power outages, especially during winter, are putting additional pressure on agricultural enterprises.

“Limited electricity supply means more intensive use of generators, which results in more expensive electricity and higher production costs,” the deputy minister stressed.

Despite the difficult conditions, the agricultural sector remains operationally resilient.

“In the short term, farmers have adapted. Ukrainian farmers remain resilient and continue to sow and harvest crops every year, ensuring food security domestically and maintaining exports,” Vysotskyi emphasized.

According to him, the domestic food market remains stable.

“Ukrainians can be confident that they will be provided with high-quality domestic agricultural products. The sector continues to operate and is doing everything possible to withstand the challenges and keep developing.”

As previously reported, Ukraine’s food market remains stable despite energy challenges, and any potential reduction in production volumes is estimated at no more than 5–7%, without systemic impact on the sector.

Source: Ukrinform

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