The rise in prices for mineral fertilizers in Ukraine poses serious risks to the agricultural sector, threatening the planting campaign and the volume of future harvests. Experts warn that due to the reduction in fertilizer application during the winter planting season, the country risks losing over 20% of its harvest, which could lead to a decrease in export revenue of $4-5 billion.
This is reported by Business • Media
Rising Prices and Critical Resource Shortages
Currently, farmers are facing record-high prices for key types of fertilizers. In particular, the price of ammonium nitrate and urea on the domestic market has already reached ₴40,000 per ton. The formation of prices is influenced by both global trends and national factors, among which the rise in logistics costs and customs duties play a significant role.
Due to financial pressure, many producers are forced to reduce the amount of fertilizer applied, which will directly affect yields and the financial performance of the sector.
“Due to insufficient fertilizer application during the winter planting season, Ukraine risks losing over 20% of the expected harvest, which in monetary terms amounts to $4-5 billion in foreign revenue.”
Threat to Profitability and Possible Solutions for Stabilization
The situation is further complicated by the fact that costs for the planting campaign are constantly rising, while future prices for grain and oilseed crops remain unpredictable. This casts doubt on the profitability of the agricultural sector as a whole.
To minimize risks and stabilize the sector, experts propose several solutions: improving logistics, launching domestic fertilizer production in Ukraine, and adjusting customs policies, which will help reduce financial pressure on farmers and provide agricultural enterprises with the necessary resources to maintain yields.