Jun 29 2022 18:14
The Food and Agriculture Organization of the United Nations and the Organization for Economic Cooperation and Development warned today, Wednesday, that global wheat prices will continue to rise in the 2022-2023 season, exposing millions of people to the risk of malnutrition.
Ukraine and Russia are the world’s first and fifth largest wheat exporters, accounting for 20 percent and 10 percent of global sales respectively, but the closure of the Azov and Black Seas to trade halted nearly all of their wheat exports.
The regulators said that current grain exports from Ukraine represent only 20 percent of its production capacity because alternative shipping methods, such as rail and road, are not as efficient as sea freight.
Forecasts by the two organizations indicate that wheat prices in 2022-2023 could increase 19 percent from pre-crisis levels if Ukraine loses its entire export capacity, and even increase 34 percent if Russia’s exports are cut in half. The 2022-2023 season begins on July 1 in the Northern Hemisphere.
“With food security already under pressure, the consequences will be dire, especially for the most vulnerable,” said Matthias Kormann, Secretary-General of the Organization for Economic Co-operation and Development, during a presentation of the organizations’ outlook for the agricultural sector from 2022 to 2031.
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