President Biden says that the price of sanctions will not only affect Russia. We will have effects here in the United States. The raising concerns of a food shortage could very much be real. The food shortage won't be present in a way that there is simply no food. However, it will show up through high prices at the grocery stores with only a small amount of food, if any, actually missing. The prices of food rising greatly is very real, while the reality of no food being present in highly unlikely. But, if you cannot afford something, you can't get it. 30% of all wheat comes from Ukraine and Russia. Fertilizer is up three times what it was a year ago. It's easy to see how prices at the grocery store are ready to shoot up as these critical food supply ingredients are in great scarcity. As long as we can avoid panic buying, we will be just alright with food actually bring on the shelves. The price on the shelves however, will be of great impact on hungry Americans.
Article : https://www.wjr.com/2022/03/28/president-biden-says-food-shortages-are-gonna-be-real/
This will definitely going to be something to watch, as it is mostly unheard of in our life time. I wonder what the raise in prices will look like, being that Ukraine and Russia account for such a large portion of wheat supply. Additionally, I am interested to see how quickly the markets will react to this.
ReplyDeleteThis is interesting, I haven't heard much about this but I will keep an eye out for how the businesses will react to this.
ReplyDeleteI am curious to see how this will exactly affect the stores in the US and by what extent. I wonder if the prices will go up by something greater than expected or lower than expected.
ReplyDeleteThis is something to look out for. Prices have already been rising with inflation, and these food supply shortages will not help either. It will be interesting as well to see the domestic response in wheat production.
ReplyDeleteWhile we can expect shortages and increase in prices, I'm not sure how much of an effect we will see in the US. I think prices will eventually level out and consumers will choose to buy other goods as substitutes to counter high prices.
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