The Russian invasion of Ukraine is causing fertiliser prices to reach record levels, pushing up the cost of food production.
With fertiliser prices reaching never-before-seen highs and the cost of fuel soaring, Australian farmers are struggling to keep up with the cost of production.Experts say it is due to Russia's invasion of Ukraine and trade sanctionsIn the past week alone, the cost of raw materials has risen 10 per cent.
Fertiliser Technology Research Centre director Mike McLaughlin said there were two reasons for the price hike.Russia is the world's biggest fertiliser exporter but because of trade sanctions, restrictions have been placed on imports into Australia. In addition to record-high fertiliser prices, farmers are also dealing with rising costs of fuel, labour and chemicals.
“The demand is still there because food demand is always increasing, but the supply of fertiliser is limited, so the price just shot up,” Professor McLaughlin said. “These are the highest prices ever for fertiliser raw materials and that means it's going to flow through., with the cost of fresh and frozen food tipped to continue to increase in coming weeks.Thomas Elder Market analyst Andrew Whitelaw said Australian farmers had not benefited from the increase in grain price."Fertiliser is expensive [as well as] chemicals, labour, and diesel.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Boral’s energy pain comes from Russia with bloodOPINION: Boral won’t be the last ASX company to see its profitability hit by the rapid rise in oil and coal prices due to the war in Ukraine.
Read more »
Morning mail: Russian forces ‘kidnap’ children, food price hikes hit businesses, Europe’s rising Covid casesWednesday: Invading troops are now inside the besieged Ukraine city of Mariupol. Plus: Australian cafe owners conflicted over passing rising costs to customers
Read more »
Workers set to take a real pay cut of 1.5% as inflation surges, RBA boss warnsPhilip Lowe hopes inflation spike a one-off caused by supply chain disruption and soaring oil prices due to Ukraine invasion
Read more »
Fertiliser prices hit new highs as multiple problems affect global suppliesFactors include reduced supplies from Russia and Belarus, China export ban and Canadian rail strike
Read more »
‘People feel suffocated’: cost of living tops French concerns before electionAs prices rise, there are warnings president could face another protest movement like gilets jaunes
Read more »
Russia-Ukraine war: Ukraine rejects demand to surrender in MariupolRussia intensified its effort to pound Mariupol into submission, its ground offensive in other parts of Ukraine has become bogged down. Follow updates here.
Read more »