Iran war threatens Ukraine grain output
REUTERS/Valentyn Ogirenko
Rising diesel and fertilizer prices caused by the U.S.–Israeli
operation in Iran have pushed up farming costs and could reduce Ukraine’s agricultural
production and exports, Reuters reported
on April 10.
The journalists cite 70-year-old farmer Mykola Maliienko is planting corn on 100 fewer hectares this spring than last year as he tries to save money after fertilizer prices jumped because of the Iran war. Reporters said his biggest worry is buying diesel, which he will need to harvest crops from his 1,200 hectares later this year.
“Our export potential could fall substantially,” Reuters quoted the farmer.
“This year it will decline by 15% to 20%, and if the situation continues that could reach as much as 40%”
The report noted that Russia, as a major oil and gas producer, could benefit from higher energy prices, and its farmers have access to cheap domestic supplies of fertilizer and diesel that Ukraine must import. Reuters also said Russia has destroyed Ukrainian refineries, leaving the country dependent on diesel imports from Europe that are needed to run farm machinery and support the military.
Dmytro Skorniakov, CEO of HarvEast, forecast that average
costs for Ukrainian farmers could rise 20% to 30% in the short term.
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