UKRAINE — As the Russian and Ukrainian conflict continues, its impact is being felt by shoppers oceans away.
Both countries are main producers for several key commodities around the globe, including wheat, barley, corn and more. As Russia refuses to cease its assault, sanctions and closures of port cities are creating shockwaves of uncertainty and unease for many businesses. This unstable climate coupled with inflation and supply chain challenges are creating the perfect storm for rising food prices.
“American shoppers should expect that unfortunately, their grocery bills are going to go up,” said Robb MacKie, president and CEO of the American Baker’s Association (ABA), in a video interview with Fox News. “If you take one of the top wheat growing regions out of production, it’s going to have a substantial ripple effect. This is going to impact some of the most vulnerable in our society.”
Many farmers are also being impacted through rising fertilizer costs, as a large portion of the world’s fertilizers remain stuck in Russia and neighboring Russian ally Belarus, the New York Times reported.
Grocery prices, along with gas bills, are perhaps one of the most notable price hikes for American consumers. As of the end of February, food prices were up 7.9% according to government data. Energy prices were even worse at a whopping 25.6% year-to-date increase, which has a direct impact on prices of several goods as production and shipping continues to climb in expense.
From a global perspective, the Food and Agriculture Organization (FAO), a branch of the United Nations, said that the international rising of food and feed costs could trigger a jump in global malnourishment.
“The conflict is set to increase humanitarian needs in Ukraine, while deepening those of millions of people that were already displaced or requiring assistance,” the agency said. “By directly constraining agricultural production, limiting economic activity, and raising prices, the conflict will further undercut the purchasing power of local populations, with consequent increases in food insecurity and malnutrition.”
