PTT: Finnish food prices will rise by 11% in 2022 due to the war in Ukraine

PTT said on Tuesday that the Russian invasion of will have a lasting impact on the global system, limiting access to inputs, agricultural products and food and raising prices. In , therefore, the agricultural cost continues and the availability of inputs may decline.

Although PTT stated that its forecast is based on the assumption that the war will drag on and limit economic activity between and the West, even a quick end to the war would not be enough to avoid long-term effects on global agricultural and food production. and trade.

The most significant uncertainty for agriculture is forecast for 2023, he said Päivi Kujalasenior agricultural economist at PTT.

If the conditions are favorable, the use of fertilizers is optimized and all possible fields have been sown during this period, the harvest must be sufficient for the Finnish food and the operation of the food chain. Uncertainty for next year is due to the availability and yield of fertilizers.

Russia has recently been a significant source of ammonia and potassium fertilizers for Finland.

“There is a risk that farmers’ liquidity will decline, production will fall or farms will be closed down and security of supply will be reduced. Many farms do not have financial buffers to help them cope with the worst, Kujala said.

As production costs have risen, the situation has deteriorated, especially for Finnish livestock farmers. Liquidity problems may also have prevented some producers from obtaining fertilizers.

“Rapidly rising costs are putting significant pressure on non-rising producer prices [production] costs, ”he emphasized Juuso Aalto-SetäläPTT Agricultural Economist.

Aleksi Teivainen –

Source: The Nordic Page

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