War in Ukraine increases the price of agricultural products in the EU by almost ten percent
The war in Ukraine has massively disrupted global agricultural markets and is driving them Prices for important products and inputs such as fertilizer and animal feed have risen sharply. The average price of goods and services in EU agriculture increased in the first quarter of this year 9.5 percent compared to the end of 2021, as the statistics office Eurostat of the European Union (EU) announced on Friday. Fertilizers and so-called soil improvers rose significantly by 21.2 percent, energy and lubricants by 17.4 percent and animal feed by 9.2 percent. The average price of agricultural products rose by six percent.
Russia’s invasion of Ukraine is slowing down supplies of edible oils and fertilizers from the Black Sea region and pushed wheat, soybean and corn prices to near record highs earlier in the year. Russia is also a major fertilizer exporter, while Ukraine is a major supplier of corn and sunflower oil.
The average price of fertilizers and soil improvers almost doubled on a yearly basis at the beginning of 2022, while prices for energy and lubricants increased by almost 56 percent in the first quarter. Higher grain and energy costs translated into an almost 23 percent increase in the average cost of animal feed. Prices of agricultural commodities such as grains, oilseeds, cattle, poultry and milk increased between 21 and 52 percent compared to the first quarter of 2021. (Reuters)
