Agricultural input prices rise by nearly 10% in the first quarter due to the turmoil of the Ukrainian war: Eurostat


According to the European Union’s Bureau of Statistics, the Ukrainian war has soared the prices of key products and inputs such as fertilizers and animal feeds, and has greatly disrupted the global agricultural market.

According to Eurostat data, the average price of goods and services currently consumed in agriculture increased by 9.5% in the first quarter of 2022 compared to the fourth quarter of 2021. This includes a 21.2% increase in fertilizers and soil conditioners and a 17.4% increase in energy and lubricants. In the case of animal feed, it is 9.2%.

According to Eurostat, the average price of agricultural productivity in the same quarter rose by 6%.

The invasion of Ukraine by Russia, both major agricultural exporters, has hampered the shipment of cooking oil and fertilizers from the Black Sea region, bringing wheat, soybean and corn prices closer to record earlier this year.

Russia is also a major fertilizer exporter and Ukraine is a major exporter of corn and sunflower oil.

Average prices for fertilizers and soil conditioners almost doubled in the first quarter of this year compared to the same period in 2021, but prices for energy and lubricants rose 55.6%. The rise in grain and energy costs was reflected in the 22.9 percent increase in average cost of animal feed.

Eurostat added that prices for agricultural products such as grains, oil seeds, cattle, poultry and milk surged between 51.7% and 21.4% year-on-year.

EU executives on Friday maintained record export prospects, although their forecasts for soft wheat production in the 2022/23 block were well below last season’s levels.

Reuters

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