the invasion of Ukraine will make fertilizer, wheat and corn more expensive worldwide

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One of the first important consequences for the Spanish of the war between Russia and Ukraine will be the increase in food prices. In recent weeks we have explained that the tension in Eastern Europe was deepening the energy crisis in the EU, since Moscow is the main supplier of gas to the Old Continent and one of the most important for oil, but fossil fuels they are not the only raw materials that countries in conflict provide us with in large quantities. They also supply us with tons of fertilizers, wheat or corn.

More expensive fertilizers. The price of fertilizers has been rising since the start of the pandemic and has recently reached all-time highs, as reported by Bloomberg. One of the reasons for this escalation is, precisely, the increase in the cost of gas, a necessary component for its manufacture and whose scarcity forced stop or reduce production of some European plants in the last 18 months.

And now, with the start of hostilitiesthe price could rise even higher because Russia is one of the world’s leading producers of cheap fertilizers, and the world’s second-largest producer of potash, an important crop nutrient that improves water retention, yield , nutritional value, flavor, color, texture and resistance to disease.

the barn of the world. On the other hand, Russia It is the main producer of cereals in the world., above the United States and Canada. In 2017, it exported 135.5 million tons of grain, and by 2022 it is expected to produce around 127 million tons. Ukraine, for its part, is also an important supplier of agricultural raw materials, especially to the European Union, since 26% of all the wheat you buy the Old Continent comes from the country attacked by Putin’s troops.

And, as if this were not enough, some of the main agricultural areas of Ukrainesuch as Kharkov, Dnipropetrovsk or Zaporizhzhia, are close to the disputed areas of Luhansk and Donetsk, which could jeopardize harvests and lead to major grain shortages.

Destruction and sanctions. In this way, the possible destruction caused by the conflict, the abandonment or requisition of crops and the sanctions and counter-sanctions that are going to start to work between Russia and the West are going to cause the commercial flow to slow down or be interrupted, which will lead to a shortage of groceries and prices will inevitably rise. Also, the lack of fertilizers will make plantations yield less throughout the world, which will make the problem worse. And that at a time when the world food price indexprepared by the Food and Agriculture Organization of the United Nations (FAO), is already at the highest levels of the last decade.

Russia has invaded Ukraine on the ground.  The digital invasion had started many days ago

This food shortage, which in Spain will mainly affect the pockets of consumers, will have even worse consequences for other areas of the planet, since Ukraine currently exports 40% of the wheat and corn it produces to Africa and the Middle East, as reported by the New York Times. Therefore, if there is a shortage of groceries and the price rises, the biggest losers will be those countries that cannot afford a rise in the bill.

Precedents. In 2014, when the Kremlin also attacked Ukraine and annexed Crimea, wheat prices soared, according to data from the Ministry of Agriculture, Fisheries and Food of Spainand that at that time Russia had not yet become the world’s leading cereal exporter, a position it reached in 2017 and still holds today.

Image | Antonio Bronic/Reuters

One of the first important consequences for the Spanish of the war between Russia and Ukraine will be the increase…

One of the first important consequences for the Spanish of the war between Russia and Ukraine will be the increase…

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