War in Iran hits Ukrainian farmers: Producers cut planting areas
Illustrative photo: Producers cut planting areas (Getty Images)
Ukrainian farmers report a sharp rise in costs and risks to exports due to increasing fuel and fertilizer prices, Reuters reports.
Ukrainian farmer Mykola Maliienko, who works fertile land in the central part of the country and supplies produce to Europe, has reduced the area planted with corn by 100 hectares this season.
According to him, this forced decision is linked to rising fertilizer prices following events in the Middle East.
The biggest concern is diesel fuel, which is needed to harvest crops from 1,200 hectares.
Its cost has nearly doubled after disruptions in global energy supplies.
Exports under pressure from new risks
Despite the war with Russia, Ukraine remains a major agricultural producer and exports its products to 150 countries.
At the same time, the geography of shipments has changed: volumes to Asia and the Middle East have decreased, while the role of the European direction has grown.
Analysts note that Russia has strengthened its position in global markets, particularly in the wheat segment, benefiting from cheaper resources.
Costs rising, outlook worsening
Maliienko estimates that costs have increased by at least 10–15%, and could rise to as much as 60% if the conflict drags on.
"Our export potential could fall substantially," Maliienko said. "This year it will decline by 15% to 20%, and if the situation continues, that could reach as much as 40%."
Sector remains critically important
The agricultural sector provides more than half of the country’s foreign currency inflows. After the blockade of ports, logistics costs rose, which hit farmers’ profits. Partial stabilization came with the opening of the grain corridor in 2023.
However, challenges remain: labor shortages, disrupted logistics, and dependence on fuel imports.
Fuel factor as the main challenge
Diesel prices have risen to nearly 92 UAH per liter ($2,11). Farmers are forced to decide whether to buy fuel now or wait.
"I don't want someone calling me and saying, 150 hryvnias, when grain is falling from the ear, and I have nothing to harvest it with," said Maliienko.
Experts predict that high fuel and fertilizer prices will persist for at least several months, which could lead to reduced production and smaller planted areas.
Ukraine’s Hydrometeorological Center summarized weather conditions for the first ten days of March and reported that in some regions winter crops resumed vegetation earlier than average long-term dates.
