Ukrainian farmers appealed to the responsible bodies with a request not to raise tariffs for Ukrzaliznytsia cargo transportation. This is stated in statements All-Ukrainian Congress of Farmers (VKF).
Agrarians noted that the 37% increase in cargo tariffs announced by Ukrzaliznytsia will have a negative impact on the profitability of micro-farms and farms, as the increase in logistics costs will be fully reflected in the purchase prices of agricultural products. Also, the congress emphasized that due to much lower incomes, small agricultural producers will not be able to purchase a sufficient amount of fertilizers, which is critical for their activities.
“The lack of funds and fertilizers will lead to a 30% drop in yield, and therefore to unprofitability. After all, the cultivated area will remain unchanged, but the harvest will be smaller. According to experts, the increase in the tariff of “Ukrzaliznytsia” will lead to the loss of approximately 1.3 million tons of grain and oil crops for the amount of 300 million dollars for micro-farms and farms.”, – warned the VKF.
In addition, the increase in the cost of freight transportation will force agricultural producers to reorient themselves from rail transport to highways:
“The transition to road transport can significantly worsen the condition of the road infrastructure, which is extremely unacceptable, especially in the conditions of war.”
We will remind that earlier experts and business associations accused “Ukrzaliznytsia” of using its monopoly position to raise tariffs for freight transportation. The American Chamber of Commerce (ACC) said that in addition to tariffs, UZ also plans to increase the cost of works and services related to transportation, as well as rates for the use of wagons and containers.
