The situation on the agricultural markets is coming to a head. Concerns about food have been growing in many countries since the start of the Ukraine war. Now there is also the fact that Russia wants to limit grain exports.
After Russia’s announcement that it would restrict exports of wheat, barley, rye and other grains, concerns on the agricultural markets are growing. There could be higher prices for consumers in Germany.
However, other countries are likely to be far more affected. According to the United Nations Food and Agriculture Organization (FAO), Russia produces more than 11 percent of the world’s wheat.
Fertilizer prices are also rising
In Germany, the cheap grain from Russia ends up mainly in the feeding troughs of animals. According to the environmental organization Greenpeace, 80 percent of this wheat used as fodder could also be used for human nutrition. For poorer countries that depend on cheap imports, price increases could have devastating consequences.
In Germany, for example, the milk producers in Lower Saxony are currently concerned about further increasing cost pressure. Due to a globally limited supply, producers should be happy about rising prices, the Lower Saxony Chamber of Agriculture announced. However, a large part of the proceeds will be eaten up by the exploding energy and feed costs and rising fertilizer prices. Energy and fertilizer have become even more expensive in the course of the war.
The Central Association of German Bakers was more relaxed. “The export ban initially has no direct effects because we in Germany and the EU have a degree of self-sufficiency in grain of over 100 percent in some cases.” In addition, there were long-term supply contracts that further stabilized prices.
Bakers worry about energy prices
In the longer term, however, bakeries could definitely feel the effects of rising world market prices for grain. “In addition, the Ukraine and Russia are important suppliers of seeds, such as sunflower seeds. This will also have an impact on prices.” Similar to dairy farmers, rising energy costs are the main concern for bakery companies at the moment.
Countries south of Europe are more affected by Russian export restrictions. According to UN figures, around 40 percent of the wheat consumed in Egypt, Turkey, Azerbaijan and Sudan came from Russia in 2020. “We must do everything we can to avert a hurricane of hunger and a collapse of the global food system,” said UN Secretary-General António Guterres.
According to the government, the background to the Russian import restrictions is that demand in the country should be secured and price increases for processors and consumers should be prevented. In the coming week, the EU Commission wants to present plans on how to react to the changed supply situation since the beginning of the Russian war of aggression. A spokeswoman for the EU Commission emphasized: “Within the EU, there is no immediate danger to food security.”
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.
