The war in Ukraine could also cause turbulence in food production in Europe – not only in the prices of raw materials or fertilizers. Politicians are trying to get a picture of the situation.
On Wednesday, the EU agriculture ministers will discuss the effects of the Ukraine war that Russia started on the international food markets and farmers.
“The invasion of Ukraine carries the risk of disrupting global markets for agricultural products,” said an official announcement from the video conference (3:30 p.m.). Energy and the production of goods such as fertilizers are also affected. According to the information, world market prices have already risen sharply since the beginning of the war.
The aim of the consultations should be to exchange information and forecasts on offers and prices, to identify problems and to consider measures, including with international partners. The heads of department also want to talk about the food supply of the people in Ukraine itself.
These countries are particularly affected
Federal Minister Cem Özdemir (Greens) had sharply condemned Russia’s attack on Ukraine. In an initial assessment of the economic situation, his department announced that possible effects on the agricultural and fertilizer markets would be observed and evaluated together with the EU. Ukraine and Russia are important exporters on the international wheat market, but the EU has a high level of self-sufficiency. Countries in North Africa and Asia as well as Turkey as the main importers could be particularly affected.
The German Farmers’ Association fears turbulence on the agricultural markets as a result of the war. Nitrogen fertilizer is already exorbitantly expensive and scarce. This situation could now worsen, it was said recently. The background is that the nitrogen fertilizer, which is important for farmers, is made from natural gas – and gas prices were high even before the current escalation.
The Ministry of Agriculture explained that it cannot be ruled out that a possible interruption to exports from the region could cause further uncertainties – also with greater price fluctuations. Overall, the food industry is also affected by price increases for inputs such as fertilizers and energy. In the course of this, “a further increase in the price of food and an increase in the inflation rate cannot be ruled out”.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
