A global pressure due to the Ukraine-Russia incident
Russia entered its 2 months of military operations against Ukraine recently. In addition to soaring energy and food prices, the war has also had a great impact on the vegetable industry in many countries, including the rise in vegetable prices in some countries. Ocean Treasure will bring you the impact of the Russian-Ukrainian conflict on the multinational vegetable industry. Meanwhile, we provide the same high-level service for fruit and vegetables, for possible solutions in this serious situation.
Mexico: Record High Fertilizer Costs Behind Fruit & Vegetables Price Inflation
Mexican producers of fruit and vegetables are severely suffering the skyrocketing costs of fertilizers that the Ukraine-Russia conflict has sent to new all-time highs. For all fresh produce, the rise in the price of all kinds of agrochemicals is directly affecting the production costs of this year’s harvest as well as threatening the supply. In Mexico, costs of fertilizers have been reported to increase by 108% on average, while subsequently, fruit and vegetable prices have recorded an increase of 19.6% YoY. The surge in prices for all fresh products reveals Mexico’s dependence on Russian fertilizers.
According to the USDA, three kinds of fertilizer inputs have dramatically increased in price over the past year. The cost of urea is 149% higher YoY, liquid nitrogen is 192% more expensive, and anhydrous ammonia is up 235%. In 2019, Russia was the world’s top exporter of fertilizers, and its trade value accounted for USD 9B. However, Russian officials have had fertilizer producers slow their exports in retaliation for Western sanctions, causing prices to soar.
Israel：50,000 Tons of Vegetables Destroyed
Israeli farmers are destroying thousands of tons of fresh vegetables as produce exports to Russia and Ukraine have ground to a halt due to the ongoing war. Carrots, celery, potatoes, radishes, and more. Up to 50,000 tons of agricultural products are rotting in warehouses or facing certain destruction. Payments for goods have also stopped on account of the plummeting value of the ruble and sanctions in response to the brutal Russian invasion of Ukraine.
The situation has resulted in a crisis for hundreds of Israeli farmers, with some having been forced to destroy entire crops after finding no alternative places to sell their produce.
Korea: Consumer Price Growth Hits 13-year High in April
Korea’s consumer prices climbed the fastest in more than 13 years last month in the wake of a spike in international raw materials prices after Russia’s invasion of Ukraine as well as sharply rising global demand for goods, state data showed Tuesday.
According to Statistics Korea, consumer prices rose 4.8 percent last month, compared to a year earlier. This marked the highest since October 2008, when the same figure of 4.8 percent was reported.Deputy Prime Minister and Finance Minister Hong Nam-ki said “the nation has faced a tough inflationary pressure due to a glitch in global supply of products and the Ukraine-Russia incident.”
New Zealand：Highest Annual Food Price Increase in over 10 Years in March
Food price increases were widespread in the year ended March 2022 with increases in all categories that we measure:
grocery food prices increased 6.7 percent
fruit and vegetable prices increased 18 percent
restaurant meals and ready-to-eat food prices increased 5.1 percent
meat, poultry, and fish prices increased 8.7 percent
non-alcoholic beverage prices increased 2.7 percent.
“Average prices for vegetables like tomatoes, broccoli, iceberg lettuce, and cabbage were notably higher than they were in March 2020 and 2021,” consumer prices manager Katrina Dewbery said.
| Category | MAR-20 | MAR-21 | MAR-22 |
| Tomatoes 1kg | 3.76 | 2.98 | 5.12 |
| Broccoli 350g | 2.87 | 2.22 | 4.01 |
| Lettuce 1kg | 4.45 | 4.6 | 7.43 |
| Cabbage 1kg | 2.22 | 1.96 | 5.03 |
Ocean Treasure, as the seafood expert rooted in China 14 years, has explored fruit and vegetable industry since 2020. The climbing volume and categories have indicated a robust growth in our full service of fruit and vegetable. At present, Ocean Treasure provide the variety of customization among asparagus, carrot, corn, garlic, onion, broccoli tomato paste etc. A wide range of fruit like strawberry, peach, apricot, blueberry is also available. If you interest in any product, feel free to contact us:
sales1@www.ocean-treasure.com
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