The escalating situation in the Middle East has driven up the costs for fertiliser, fuel, and transportation, highly affecting profit at local farms. Experts declared that if the conflicts continue for another six months, some of the expenses may be passed to the customers, resulting in product prices increasing as much as 20%.
As reported by Shin Min Daily News, a spokesperson for Vegeponics Farm shared in an interview that the continued rise of prices for fertiliser is a challenge to them, admitting that their current stocks are only enough to sustain their operations for the next six months. However, if the war continues until May, they will have to buy the next batch of fertilisers at a higher price.
The farm company also shared that delivery costs of third-party providers have increased by about 10% to 15% per trip, causing farm profits to decline by 10% since the war.
On the other hand, another farm also revealed that even though they are indoors and rely less on fertilisers, the potential rise of electricity in the future might affect their operations. The founders of GreenLoop indoor farms admitted: "Indoor farms are more dependent on electricity, and if electricity prices continue to rise, it will also have an impact."
Read more at The Independent
