Transformation of solvent demand and food consumption in Ukraine in war condition

Svitlana Cheremisina, Volodymyr Rossokha, Matyna Mohylova and Nataliya Romanchenko
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Svitlana Cheremisina: National Research Centar "Institut of Agrarian Economics", Kyev
Volodymyr Rossokha: Name: National Research Centar "Institut of Agrarian Economics", Kyev
Matyna Mohylova: National University "Kiev-Mohyla Academy"
Nataliya Romanchenko: National University "Kiev-Mohyla Academy"

Ekonomski pregled, 2024, vol. 75, issue 4, 330-346

Abstract: The article is devoted to the assessment of the state and peculiarities of the formation of the solvent demand for food products in Ukraine during the war and the determination of the optimal amount of wages to ensure the consumption of the main set of food products at the level of rational standards. A comprehensive analysis of structural changes in the solvent demand for food consumption in Ukraine in the war was carried out using the monographic method. Determination of actual and aggregate costs at the level of rational standards for food products was carried out using the calculation-constructive method. The comparison of actual and necessary costs at the level of rational norms for nutrition was carried out on the basis of collected statistical and calculated data by the method of comparative analysis. It is recognized that the war has negative consequences in the nutrition of Ukrainians. During the first year of the war, the price affordability of food products decreased by 26.6% on average. In 2010-2022, the share of population spending on food remains very significant (from 51.6% in 2010 to 57.8% in 2022). In 2023, this indicator is expected to grow to 58.5%. It has been proven that in order to consume basic food products in accordance with rational norms, the population of Ukraine had to spend 1.56 times more in 2021 than the actual expenses. To achieve the level of consumption in accordance with rational standards in 2022, an additional 23,478 UAH per year, or 1,957 UAH per month, is needed. The forecast for 2023 predicts a deterioration of the ratio of actual food costs to costs under rational standards to 1.68. It was determined that in 2021 the wage level should be at least UAH 33,944 (EUR 1,131) per person per month, which is 2.41 times higher than the actual wage level in the country. The war worsened this ratio to 2.6. It was established that in 2023, for food at the level of rational consumption standards, a Ukrainian should earn 38,564 UAH (964 EUR per month), which is 2.9 times higher than the actual wage level (13,423 UAH or 335 EUR). The novelty of the study consists in the development and practical testing of the methodology for determining the optimal wage of Ukrainians to ensure the consumption of the main set of food products at the level of rational standards.

Keywords: food products; price; solvent demand; availability and sufficiency of consumption; rational rate of consumption (search for similar items in EconPapers)
JEL-codes: D19 E31 H56 I31 (search for similar items in EconPapers)
Date: 2024
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