Amid increasing consumer spending within Ukraine, agricultural entities are significantly investing in the development of the domestic market. This shift towards internal consumption has been partly prompted by logistical challenges in exporting vegetables and restrictions at borders with Western countries, instigated by local farmers. As a result, Ukrainian producers are increasingly replacing imported goods with domestically produced ones.
Estimates suggest that the conflict with Russia has resulted in losses of around 150,000 tons of stored vegetables. In response, Ukrainian farmers have embarked on expanding their storage capacities, with 20,000 tons of new capacity built in 2023. The focus of these storage facilities primarily lies on onions (70%), followed by carrots and potatoes (15% each).
February saw orders for 25,000 tons of additional vegetable storage, with expectations for this figure to rise to 40,000 tons by the start of summer. This surge in storage capacity orders underscores the commitment of Ukrainian farmers to adapt to current challenges by fortifying the domestic market and enhancing storage capabilities.
Source: ubn.news
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