The conflict in the Middle East also has another economic dimension. The Persian Gulf region is one of the largest producers of nitrogen fertilizers in the world, and between 1/4 and 1/3 of the world's trade in raw materials for fertilizers - ammonia and urea - passes through the Strait of Hormuz. This presents Bulgarian agricultural producers with a new challenge: the prices of nutrient substances are rising, the harvest is scarce and grain imports are required.
“The price of fertilizers is rising rapidly”, says Milen Koev, who is the chairman of the Regional Farmers' Union “Danube Grain”, writes Nova TV.
He has begun preparations for the fertilization of about 5,000 acres in the area of the village of Trastenik in Ruse. At this point, producers are faced with the challenge of whether they will be able to fertilize wheat, barley and spring crops and at what price.
“The season is very dynamic. Few producers are stocking up for the entire campaign. Most of us are prepared for the upcoming campaign, but we will have another one in a month to feed the wheat. A large part of our colleagues have not purchased fertilizer in advance. Those who have not done so will now buy it at a very high price”, explains Milen Koev.
This will lead to two negative factors.
“The cost price will increase significantly. "Nutrition is a major part of crop nutrition and if we don't give them what they need, yields will definitely be low," says Milen Koev.
And this would lead not only to economic losses for farmers, but also to difficult supply for industrial producers of feed and food, the industry believes.
“With these problems with natural resources and production, the processing itself is going up extremely. Electricity and fuel are getting more expensive”, says Koev.
If Bulgarian production does not reach, imports will probably have to be made from the South American trade union Mercosur, farmers fear.
”European producers adhere to strict measures and standards. There is no way to be sure what production will come in. These were our concerns with imports from Ukraine, as well as this agreement with Mercosur at the moment. "That first pushed the price down, now it turns out that the sunflower is not fit for consumption. We really have to be very careful with what we import, where we import it from and how we import it, because it still affects our table," commented Koev.