November 5, 2024 | 10:43 GMT +7

  • Click to copy
Wednesday- 13:51, 02/03/2022

Wheat and corn markets react to war in world's breadbasket

(VAN) The already strained supply lines will likely face more stress due to the war in Ukraine. There's a reason why Ukraine is called the breadbasket of the world.
About a quarter of the world's grain and about a fifth of the world's corn comes from the breadbasket of the world. Photo: iStock

About a quarter of the world's grain and about a fifth of the world's corn comes from the breadbasket of the world. Photo: iStock

Russia's invasion of Ukraine will more than likely have ripple effects across Europe and the rest of the world. One of the more immediate impacts of the conflict will be a reduction in the supply of wheat and corn.

About a quarter of the world's wheat trade and a fifth of the world's corn comes from the region, Bloomberg reports. Since Russia invaded Ukraine, both countries have had to close ports used for exporting goods. It's unknown when either side will be able to reopen these ports again.

On Friday, World Trade Organization Director-General Ngozi Okonjo-Iweala explained that the situation will have a significant impact on the price of bread and other wheat products for regular people.

Countries that buy wheat and corn from Ukraine and Russia will now have to look elsewhere, putting more strain on international suppliers.

One expert that spoke with Bloomberg explained that the situation will be putting more pressure on areas of the world where supplies are already lower than normal.

Fox Business previously reported that due to the wheat shortage, beer is likely to see a price increase over the coming months.

Barley, one of the key ingredients in making beer, is heavily produced in Ukraine. The region is often called the "breadbasket of Europe" due to the high amount of grain grown in the area.

It's unclear what impact this will have on the price of beer, however. Major brewers, like Molson Coors, have reportedly been able to absorb the higher costs while keeping the price the same for consumers.

Beer prices may increase

A significant percentage of barley used for beer comes from Ukraine.

Prices for many products have been rising over the past year, but one product in particular may see a sharp increase due to recent events. While Russia's invasion of Ukraine has caused many people to boycott Russian vodka, the conflict may also have an impact on beer drinkers as well.

Barley, one of the key ingredients in making beer, is heavily produced in Ukraine, WISN reports. The region is often called the "breadbasket of Europe" due to the high amount of grain grown in the area.

Jim McGreevy, president and CEO of The Beer Institute, spoke with news outlets about the situation.

"Ukraine accounts for about 20% of beer’s usage of barley," he said. "It’s one of the top five global producers of barley, so brewers, particularly at a global level, will be watching the supply and price of barley."

It's unclear what impact this will have on the price of beer, however. Major brewers, like Molson Coors, have reportedly been able to absorb the higher costs while keeping the price the same for consumers.

Some smaller brewers, however, have had to make adjustments.

Paul Johnson, bartender at St. Paul Fish Company in Wisconsin, spoke with WISN about how the rise in the cost of goods may impact prices at the bar.

"Like maybe 50 cents a glass on beer. Maybe a dollar on call drinks and stuff like that. But nothing too crazy," he explained.

Tr.D

(Fox Bussiness)

Small farmers in Europe struggle to get by

Small farmers in Europe struggle to get by

(VAN) Brutal economic situation has inflicted misery on farmers who struggle to turn a profit and forced some to look for alternative streams of revenue.

China intensifies emergency food supply amid increasing extreme weather events

China intensifies emergency food supply amid increasing extreme weather events

China has reinforced its emergency food supply in response to increasing extreme weather events and natural disasters, an official said.

Scientists dismayed as UK ministers clear way for gene editing of crops - but not animals

Scientists dismayed as UK ministers clear way for gene editing of crops - but not animals

(VAN) Advocates urge government to allow ‘precision breeding’ to combat disease, but RSPCA warns of ethical dangers.

Expectations positive, but tempered on GM wheat in US

Expectations positive, but tempered on GM wheat in US

(VAN) HB4 wheat’s USDA approval will enable Bioceres to 'move forward with nonregulated field activities for product development and commercialization,' CEO Federico Trucco said in September.

Famine and catastrophic hunger in 5 major hotspots alongside the looming La Niña_climate threat in others

Famine and catastrophic hunger in 5 major hotspots alongside the looming La Niña_climate threat in others

(VAN) Acute food insecurity is set to increase in magnitude and severity in 22 countries and territories.

Pharma and agritech groups push against biodiversity levy at UN summit

Pharma and agritech groups push against biodiversity levy at UN summit

(VAN) One contentious proposal seeks to impose 1% levy on returns from products made using genetic data.

The long association between humans and our stomach bacteria

The long association between humans and our stomach bacteria

(VAN) In a study published in Nature, a team has uncovered new new details about the long association between humans and our stomach bacteria.

Read more