These will probably remain high for the rest of 2022-2023. The main effect of the crisis in Ukraine on competition for vegetable oils from developing countries is higher prices. The most important oil from developing countries is palm oil, but that is often rejected as a substitute because of sustainability issues. Food processors had to find other oils to use instead. The Russian invasion in 2022 caused an abrupt global shortage of sunflower oil from Ukraine. Ukraine and Russia are two of the world’s biggest suppliers of sunflower oil. How is the war in Ukraine affecting competition for vegetable oils? Check opportunities to develop a local production/supply of organic fertiliser.Ģ.Keep track of national projects that offer subsidies or other support to farmers to make up for higher input prices (such as the Kenya African Emergency Food Production Facility).Use this summary of estimated fertiliser use by crop category in selected countries to see which crops use the most fertilisers.For example, by following RaboResearch Grain and Oilseeds. Stay up to date on developments in the global oilseed sector.For example, by following RaboResearch Farm Inputs. Stay up to date with developments affecting farm inputs.Another alternative that is being looked at in some developing countries is organic fertiliser, such as manure.įigure 1: Ghanaian farmers look for organic alternatives as Russian fertiliser costs skyrocket For example, groundnuts instead of maize. To reduce their need for synthetic fertiliser, some farmers are planting alternative crops that need less fertiliser. It is being used to give farmers subsidised access to fertiliser. This is meant to “support food security efforts amid rising cost of inputs and prevailing drought”. In Kenya, for example, the government has received a loan from the African Development Bank. Some governments are trying to support their farmers. Still, individual small farmers may be struggling because of high fertiliser prices. This may help make up for the higher production costs. Prices of inputs have increased, but so too have prices of vegetable oils. Farmers are looking for alternatives to synthetic fertiliser In the case of energy commodities, the developing countries that are important oilseed producers do not rely very much on Russia for their imports. But high fertiliser prices are having a far greater effect. Of course, Russia’s temporary ban on fertiliser exports and the quota on fertiliser exports between July and December 2022 may be affecting countries that import fertilisers from Russia. For example, in recent years Indonesia imported US$200-400 million worth of fertilisers a year from Russia – but that was out of total imports worth US$1.7-2.2 billion per year. The developing countries that export vegetable oils do import some fertiliser from Russia, but also a lot from many other countries. Russia is one of the world’s main exporters of both fertilisers and energy commodities. The other 40% powers the synthesis process. About 60% of the natural gas is used as raw material. Their production process starts by mixing nitrogen from the air with hydrogen from natural gas (an energy commodity) at high temperature and pressure to create ammonia. Nitrogen-based fertilisers are the largest group. The war has resulted in higher prices for energy commodities, and for inputs that consume a lot of them. Other inputs for vegetable oil production are electricity, diesel and pesticides. The main fertilisers for oil palms are potassium and nitrogen (ammonium sulphate). So the world’s largest oil seed producers (such as Indonesia) use large volumes of fertilisers. Input prices have gone upįertiliser is an important input to grow the oil seeds and fruits that produce vegetable oil. In developing countries where farmers may have limited financial means, the higher prices have led to more projects to find alternatives for artificial fertiliser. But it has caused their prices to increase. Up until now, the war in Ukraine has not a caused any shortage of production inputs for vegetable oils, such as fertiliser and energy. How is the war in Ukraine affecting production inputs for vegetable oils? How is the war in Ukraine affecting vegetable oil exports from developing countries?ġ.How is the war in Ukraine affecting competition for vegetable oils?. How is the war in Ukraine affecting production inputs for vegetable oils?.
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