After years of war, Ukrainian farmers are reducing sowing due to the conflict in Iran - Media
Kyiv • UNN
Due to the conflict in Iran, the price of diesel has risen to 92 hryvnias per liter. This will lead to a 15-40 percent drop in Ukraine's export potential.
Ukrainian farmers are facing rising costs due to increasing energy prices after the conflict around Iran. This is reported by Reuters, writes UNN.
Details
In its material, Reuters tells how Mykola Maliienko, a farmer from central Ukraine, will sow 100 hectares less corn this season, trying to reduce costs. According to him, diesel fuel prices have almost doubled – to about 92 hryvnias per liter, which creates risks for harvesting.
Our export potential may significantly decrease
Impact on the industry
High fuel and fertilizer prices can increase production costs by at least 10-15%, and in some cases – up to 60%. According to farmers' estimates, this could lead to a 5-10% reduction in grain production.
The increase in average production costs is likely to be around 20%, possibly 30%
Context
Ukraine remains one of the key food exporters, supplying products to about 150 countries. Last year, agricultural exports brought in over $22 billion and provided more than half of foreign exchange earnings.
At the same time, the war with Russia and attacks on infrastructure have forced the country to import fuel, which increases the vulnerability of the agricultural sector to fluctuations in world prices.
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