Ukraine Ag Ministry Bans Fertilizer Exports

Ukraine, a major global producer of agricultural products, has banned exports of fertilizers given the Russian invasion, according to their agriculture ministry. The country has already banned exports of some agricultural commodities and introduced licenses for its key export goods - wheat, corn and sunflower oil.

"The cabinet of ministers is introducing a zero quota for the export of mineral fertilizers that is a de facto ban on the export of fertilizers from Ukraine," the ministry said in a statement. It said the ban would help "to maintain balance in the domestic market" and applied to nitrogen, phosphorus, potassium and complex fertilizers.

Ukraine traditionally starts spring field work in late February or in March. Farmers say they will start sowing in safe areas as soon as they can.

Ukraine's President Volodymyr Zelensky said the country must sow as many crops as possible this spring, despite the Russian invasion.

The country's agriculture producers' union said this week farmers were likely to reduce areas sown to sunflowers, rapeseed and corn this year, replacing them with cereals - buckwheat, oats and millet.

As the world's largest exporter of sunflower oil, Ukraine had forecast before the invasion that it could export more than 60 million tons of grain, including 33 million tons of corn and 23 million tons of wheat, in the 2021/22 July-June season.

The agriculture ministry reported exports of 43 million tons of various grains in the 2021/22 season as of February 23rd, the day before the Russian invasion.

Editor’s Take:

This ban is unlikely to have a major impact for the current (2022) crop year but should the conflict between Russian and the Ukraine continue, 2023 could be very problematic. Ukraine and Russia are both major exporters of fertilizer and grains, especially wheat. Thus, it could be a double whammy impact going forward. This type of uncertainty will disrupt global markets. As always, we are hoping for a peaceful resolution to the situation in Ukraine sooner than later!