Garlic prices in Ukraine have hit a historic high, surpassing €4.5 per kilogram in mid-December. This marks the highest price ever recorded, even exceeding levels seen during the COVID-19 pandemic and the early stages of the Russian invasion.
The surge in prices is attributed to a combination of rising demand in Europe and declining local production. Ukraine no longer has sufficient commercial stocks or large-scale garlic farms, and importing high-quality garlic has become prohibitively expensive.
According to government data, garlic cultivation areas in Ukraine have decreased by nearly 15% since 2020, dropping to just 21,000 hectares. Most garlic is now produced by small family farms, which cannot meet the requirements of retail chains or industrial processors.
Despite these challenges, garlic remains one of the most profitable crops in Ukraine. Industry experts estimate that intensive garlic farming costs around $17,000 per hectare, but potential earnings can reach up to $40,000 per hectare. For comparison, the revenue from one hectare of garlic is equivalent to that of 40 hectares of corn under current market conditions.
However, expanding garlic production faces significant hurdles. Garlic farming is labor-intensive, and Ukraine lacks the necessary mechanized equipment, such as planting machines and harvesters. Before the war, some garlic farms covered up to 70 hectares. Now, most fields are less than two hectares.
Experts suggest that garlic farming could be a lucrative opportunity for entrepreneurs willing to invest in mechanization. Small-scale farming of up to five hectares requires at least five workers, while larger fields of 10 hectares or more need mechanized equipment to be viable.
With garlic prices at unprecedented levels, Ukraine's garlic market offers a profitable opportunity for those prepared to overcome its logistical challenges.
Source: biz.liga.net