The worsening situation around Iran has already begun to affect the Ukrainian agricultural sector. Due to a sharp increase in the price of diesel fuel and mineral fertilizers, farmers are forced to revise production plans, which may affect both the harvest and the country's export potential.
Reuters reports on such trends, citing examples of farms in the central regions of Ukraine. Analysts emphasize that global geopolitical events are increasingly affecting the local economy, especially in the field of agricultural production.
The situation of 70-year-old farmer Mykola Maliyenko, who cultivates 1,200 hectares of land and exports products to European countries, is indicative. This season, he plans to reduce corn crops by 100 hectares compared to last year. The reason is the sharp increase in the price of fertilizers that occurred after the start of the conflict around Iran.
An equally critical problem for farmers is the cost of diesel fuel, which is needed for field work and harvesting. According to Malienko, the price of diesel has almost doubled since the end of February and currently reaches 92 hryvnias per liter, which significantly increases producers' costs.
The farmer estimates that the cost of production this year may increase by at least 10–15%. If tensions in the Middle East persist, this figure may jump to 60%. In this case, the export capabilities of his farm will be reduced by 15–20%, and in the event of a protracted crisis - even up to 40%.
Reuters analysts also note that the current situation may provide additional economic advantages to Russia. As one of the key exporters of oil and gas, it benefits from rising energy prices, while Ukrainian farmers are forced to purchase expensive imported fuel and fertilizers.
An additional challenge is limited fuel storage capabilities. Due to attacks on oil depots, suppliers avoid accumulating large stocks, which makes it difficult to provide farmers with resources during peak periods.
Dmytro Skornyakov also warns of rising costs. According to his estimates, in the short term, Ukrainian farmers' costs may increase by 20–30%, and production volumes in the current season will decrease by 5–10% if weather conditions do not compensate for the negative impact of economic factors.
As a result, Ukraine's agricultural sector has come under pressure from several factors at once - from global conflicts to internal infrastructure restrictions. This creates risks not only for individual farms, but also for the total volume of agricultural exports, which is critically important for the country's economy.
agrinews.com.ua
