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The impact of war events and external factors on Ukraine's domestic tomato market

The Ukrainian tomato market has been significantly impacted due to external factors due to the destruction and seizure of major tomato-producing facilities by Russian forces. Also, due to adverse weather conditions, financial constraints, and energy disruptions, tomato production in Ukraine dropped by almost half in 2022.

Despite these challenges, Ukrainians won't face a tomato shortage. Imports will continue to be the main factor in the fresh tomato market in Ukraine in the coming years.

The country lost its tomato export status in 2016 due to rising energy costs. Fresh tomato exports plummeted by over 100 times from 2016 to 2022.

Although current tomato prices are relatively stable compared to 2022, they are significantly higher than pre-war 2021. In 2023, prices fluctuated between $1.5-2.5 per kg, while pre-war prices were under $1 per kg.

The government's allocation of 20 grants totaling $3.3 million aims to construct greenhouses for fruit, berry, and vegetable cultivation, including tomatoes, spanning around 30 hectares. However, this support won't achieve year-round production, focusing, as it does, on plastic-covered greenhouses rather than professional facilities.

The most critical tomato price situation is anticipated in winter 2023-2024, dominated by imports. The industry's winter state hinges largely on stable national energy systems. In conclusion, Ukraine's tomato market struggles amidst conflict and external challenges, impacting domestic production and necessitating sustained reliance on imports.

Source: delo.ua

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