The increase in the price of mineral fertilizers poses serious threats to the sowing campaign and the volume of the future harvest. During the winter sowing, Ukraine may lose more than 20% of the forecasted harvest. In monetary terms, this is about 5 billion dollars. This was stated by Deputy Chairman of the All-Ukrainian Agrarian Council (AAC) Denys Marchuk.
According to the AAC, the current price situation already calls into question the ability of farmers to fully provide their fields with all the necessary resources. On the domestic market, the price of ammonium nitrate and urea has already reached 40 thousand hryvnias per ton. The increase in prices is caused by both global trends and internal factors, in particular logistics costs and customs payments.
Price increases are also being recorded in the world, and if fertilizers cost about $750-760 on foreign markets, then in Ukraine their cost is even higher due to logistics and customs duties.
Due to such a financial burden, farmers are forced to reduce the amount of nutrients applied, which will directly affect yields.
The Deputy Chairman of the Agricultural Council emphasized that the profitability of the agricultural sector is under threat, as sowing costs are increasing, while future prices for grain and oilseed crops remain unpredictable.
In this situation, the VAR proposes specific steps to stabilize the market. Among them are changes in logistics, the launch of production, and adjustments to customs policy.
Marchuk emphasizes that the under-application of fertilizers can have large-scale consequences for the country’s economy.
“If we are talking about winter sowing, the situation can become critical, and we risk losing more than 20% of the future harvest. In monetary terms, this is more than $4-5 billion in foreign exchange earnings,” ‒ he emphasized.
Recall that the VAR appealed to the government with a request to urgently stabilize the nitrogen fertilizer market. Due to reduced global supplies and a domestic shortage of ammonium nitrate, urea prices have risen to $730 per ton. Farmers say the fertilizer shortage could reduce yields by more than 20%.
