BMPA warns of rising costs due to Ukraine conflict
The British Meat Processors Association (BMPA) has predicted that the war in Ukraine will impact energy costs and, in the short term, supplies of CO2 gas.
BMPA stated the conflict in Ukraine will have a further impact on energy costs and, in the short term, the cost of CO2 more so than supplies. It said that “the wider concern”, however, is that Russia produces two thirds of the world’s Ammonium Nitrate, which is the main fertiliser for farmers, and which has already doubled in cost over the last year.
According to S&P Global, in a move to shore up its domestic farming industry, Russia has placed a ban on all exports of Ammonium Nitrate from 2nd February to 1st April 2022.
“A serious concern”
Chief executive of the BMPA Nick Allen said: “If farmers can’t get fertiliser they will not be able to grow the amount of grass they normally do to graze their animals. In addition Ukraine has a massive influence on wheat prices which means that feed costs could go up substantially as well. How this will impact on milk and meat production in the UK and how quickly it will impact we will have to see but there is a serious concern.
“Undoubtedly there will be consequences here that people will not have even thought of yet and which will only surface as the situation develops. Everyone needs to look at their supply chains and try to anticipate what the potential impacts could be.”
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