War in Middle East Drives Up Farm Costs in Korea: Fuel, Fertilizer & Vinyl Shortages

South Korean farmers are facing mounting economic pressures stemming from the ongoing conflict in the Middle East, with rising fuel costs compounded by shortages and price increases for essential agricultural supplies like plastic sheeting and fertilizer. Some farmers report conditions are more difficult than during the 1997 Asian Financial Crisis.

Rising Costs and Supply Concerns

Lee Kyung-sil, a 67-year-old grape farmer in Wanju County, North Jeolla Province, stated, “It’s harder than during the IMF.” She explained that increased fuel costs due to the conflict between the United States, Israel, and Iran have significantly impacted her business. Operating four greenhouses, she has been forced to limit heating to just one this year, resulting in delayed growth in the unheated structures.

Maintaining optimal temperatures is crucial for grape production, requiring daytime temperatures of 28°C and nighttime temperatures of 18°C to ensure proper flowering and fruit development. Tomato farmer Lee Kyu-ho, operating on 4,000 pyeong of land in Chuncheon, Gangwon Province, reported a 40% increase in the price of tax-exempt fuel oil, rising from 1,000 won per liter to 1,400 won. He switched to electric heating but faces increasing electricity costs as well.

Did You Know? In 2025, the average nationwide price for tax-exempt gasoline was 1,033.46 won per liter and indoor light oil was 1,118.96 won per liter, but by April 6, 2026, those prices had risen to 1,240.84 won and 1,349.80 won respectively.

The challenges extend beyond fuel. Plastic sheeting, derived from petroleum, and fertilizer are becoming more expensive and harder to obtain. Im Dong-jin, a flower farmer in Chuncheon, Gangwon Province, stated that suppliers are no longer accepting orders for plastic sheeting. Je Seung-ho, a paprika farmer in Goseong County, South Gyeongsang Province, faces the prospect of pre-paying tens of millions of won for Japanese-imported plastic sheeting, required for his greenhouses.

Fertilizer supplies are also strained. 38.4% of urea imported for fertilizer in 2025 came from Saudi Arabia, Qatar, and the United Arab Emirates, all nations whose shipments pass through the currently blockaded Strait of Hormuz. Park Yong-rye, a farmer in Naju County, South Jeolla Province, cultivating rice and pears on 22,000 and 13,000 pyeong respectively, is struggling to secure the 250 bags of fertilizer she needs, despite the expectation of a supply arriving in April.

Expert Insight: The confluence of rising input costs and potential supply disruptions presents a significant risk to South Korean agricultural producers. The ability to absorb these costs will likely vary widely, potentially leading to increased price volatility for consumers and disproportionate hardship for smaller farms.

Livestock farmers are also bracing for increased feed costs, as grains and hay are largely imported. Park Young-cheol, head of the Hanwoo Association in Gangwon Province, stated that feed price increases are “a foregone conclusion” due to rising exchange rates.

While rising production costs could lead to higher agricultural prices, Kim Seong-bo, an executive with the pear producers association, cautioned that farmers may ultimately bear the burden if economic conditions weaken and they are unable to pass those costs on to consumers.

Frequently Asked Questions

What is driving up costs for South Korean farmers?

The primary driver is the increase in fuel prices due to the conflict between the United States, Israel, and Iran. This impacts not only fuel for farm machinery but also the cost of producing essential supplies like plastic sheeting and fertilizer, which are derived from petroleum.

Frequently Asked Questions

Are there specific materials farmers are struggling to obtain?

Farmers are reporting difficulties securing plastic sheeting for greenhouses and fertilizer. Some suppliers are no longer accepting orders for plastic sheeting, and fertilizer imports are potentially threatened by disruptions to shipping routes through the Strait of Hormuz.

What is the government saying about fertilizer supplies?

The Ministry of Agriculture, Food and Rural Affairs states that, considering current fertilizer reserves, a stable supply is expected until July.

How will these economic pressures affect the availability and cost of food for consumers?

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