How Russia-Ukraine Conflict Hits Your Food Budget

The escalating conflict between Russia and Ukraine, which are top global exporters of wheat, has hit crop production and is driving up prices in several parts of the world.

Wheat is one of the most widely produced grains in the world, leading the grain market along with corn and rice in production and sales.

Ukraine accounts for 12 per cent of world wheat exports, and top wheat supplier Russia covers 17 per cent of the trade.

The massive fertile plains of black soil makes the second-largest European country Ukraine one of the most apt places on the continent to grow wheat, along with south-western Russia.

While Ukraine ships more than two-thirds of its annual wheat harvest, Russia ships half of its wheat crop each year and it has more leftover at the end of the season versus Ukraine.

Commodity analysts evaluate how an interruption to grain supplies in Ukraine would be easily noticeable as the majority goes to exports and little gets put into storage

Soaring prices of raw agriculture materials like wheat have broad repercussions for households, and potentially threaten a world economy trying to recover from the damage of the COVID-19 pandemic.

Emerging markets (some notable economies include India, Mexico, Pakistan and Brazil), in some cases already under pressure from weaker currencies, are particularly vulnerable because food costs make up a larger share of their spending.

Emerging markets (some notable economies include India, Mexico, Pakistan and Brazil), in some cases already under pressure from weaker currencies, are particularly vulnerable because food costs make up a larger share of their spending.