THE IMPACT OF THE WAR IN UKRAINE ON FOOD

  1. The war between Russia and Ukraine, both food-producing powerhouses, has already sent prices for cereals like wheat soaring and European governments scrambling to stabilize markets.
  2. Europe can probably weather the immediate storm. Its farmers are bracing for even higher costs of basic inputs like fertilizers and animal feed, but consumers are unlikely to see empty supermarket shelves. Costs will go up particularly for key goods like sunflower oil but rich Western economies can afford to diversify.
  3. Ukraine is a major exporter of commodities like wheat, corn and sunflower oil but Russia’s invasion means all trade has stopped because ships cannot leave Black Sea ports. 
  4. Ukraine is the EU’s fourth biggest external provider of food, acting like an enormous vegetable patch. 
  5. The EU gets from Ukraine over
  • 48.9% if its cereals (excluding wheat and rice)
  • Around 20% of its soft wheat imports
  • 48.5 % of its vegetable oils (excluding palm and olive)
  • 88 percent of sunflower oil. Sunflower oil, which can be found in everything from baked, canned and pre-made foods, to spreads, sauces and soups. It is also widely used in confectionary products and is an ingredient that is difficult to replace in baby food. Between 35 and 45% of sunflower oil refined in the EU comes from Ukraine
  •  41 percent of rapeseed
  • 18.4 % of oilseeds (other than soya beans)
  • 26 % of honey from Ukraine.
  • 25.1 % of poultry meat, fresh, chilled and froze

6. Less corn from Ukraine means less feed for Europe’s animals this year, and higher animal feed prices for Europe’s farmers, who are already struggling to make ends meet. A lot of that Ukrainian fodder traditionally comes via Black Sea ports that are now blocked.

7. With prices of food products soaring, it will be more expensive for EU food processors to get hold of raw ingredients, while Europe’s farmers are set to pay even more for fertilizers to keep their yields high. The price of fertilizers — 30 percent of EU imports come from Russia — has already rocketed by 142 percent compared with this time last year.

8. In the immediate crisis zone are countries that are staggeringly dependent on Ukraine and Russia, like Egypt, Tunisia, Algeria, Morocco, Lebanon and Turkey. A stunning 48 percent of wheat imports to Algeria come from Ukraine. Those countries will have to turn to other exporting nations to buy grains, further pushing up global prices.

9. Rising food prices globally will impact all the poorest, and least food-secure countries, from Bangladesh and Madagascar to Yemen.

10. 55 percent of wheat imported into Lebanon (which is largely dependent on imports of grain) comes from Ukraine. In Turkey, Ukrainian wheat makes up for 23 percent of all imports, while Russian wheat constitutes 62 percent of imported supplies, according to FAO data. Egypt is highly dependent on both Russia and Ukraine.

 

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