GEORGE TOWN – Malaysia will likely endure another significant increase in food prices if the Russian-Ukraine war persists as the two countries are among the biggest exporters of fertiliser in the world, according to former deputy minister of agriculture and agro-based industry, Sim Tze Tzin.
Speaking to The Vibes, he said that the cost of fertiliser has increased by 50% in the past year due to Covid-19 and the global shortage of supplies, and the conflict happening between Ukraine and Russia will most definitely affect the prices of food in Malaysia.
“Whether we import our fertiliser from Ukraine or Russia is immaterial because global farmers across the world will be scrambling to buy fertiliser, especially from larger countries like America and China.
“Expect higher inflation and raised prices of all vegetables and food because of this conflict. Even the Food and Agriculture Organisation of the United Nations has already put up warnings stating that food prices will increase further.”
According to Bloomberg Businessweek, Russia is a major low-cost exporter of a myriad of crop nutrients exported to all continents, and one week after the invasion on Ukraine started, the prices of fertilisers in some areas in the United States had increased by 29%.
The Bayan Baru MP said that Malaysia does not produce fertiliser, but only the nitrogen from the nitrogen-phosphorus-potassium compound that makes up fertiliser.
Though Malaysia does produce organic fertiliser, it only amounts to 5% to 10% of the total needed, and as such the nation is heavily reliant on imports.
“To control the price hike, Malaysia needs to look at precision farming, where the fertiliser used is targeted and timed using technology, so it is not wasted. There are even more advanced methods like dripping where fertiliser is dripped according to the time the plants need it.
“Farmers must look at this seriously and think of how to save costs. The technology is already available. As it is, fertiliser amounts to approximately 30% of the total cost to grow vegetables.
He added that the percentage of inflation will heavily depend on how long the conflict between Russia and Ukraine lasts.
“If the parties involved can settle at the negotiation table, then the price hike will be short-term. But if it is a long-drawn conflict, it will be a huge issue in terms of food prices.” – The Vibes, March 9, 2022
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