By Nathaniel Lee
Source: CNBC
The war in Ukraine is putting a massive strain on the global food supply.
Ukrainian grain exports last month were a quarter what they were in February. Also as a direct result of the Russian invasion, the cost of fertilizers, with prices soaring for raw materials like ammonia, nitrogen, and nitrates, are up 30% since the start of 2022.
“This is going to be another major test of the food supply system,” said Diane Charlton, assistant professor of agricultural economics at Montana State University. “We will have to watch very carefully what’s happening in other parts of the world and consider ways to reduce risks of food shortages and conflict.”
Meanwhile, food prices in the U.S. are rising at historic rates, while prices for commodities like wheat and corn are at their highest levels in a decade. What’s more, the U.S. Department of Agriculture predicts that food-at-home prices will see an increase of up to 4% by the end of 2022.
