Russia’s invasion of Ukraine has caused many supply shortages, the ones that come to mind are gas and energy. However, the supply of food has also been affected globally. Ukraine is also known as one of the breadbasket of Europe, being the fifth largest exporter of wheat in the world. There are supply shocks to be felt across the globe, given that Ukraine will lose half of it's harvest this year because of the Russian invasion and blockades. Moreover, Ukraine is also limiting its agricultural exports to ensure there is enough supply available for the nation. While developed countries have the resources to protect themselves in the short term, not everyone is as lucky. In particular, the developing world has felt the impact of these shortages in the short run. The MENA region is the highest exporter of wheat in 2020, with half of Lebanon and Libya's wheat supply coming from Ukraine.
The effects are already being felt on the ground. A small bakery in war torn Beirut is at risk of going out of business. Mr Khafiyeh is struggling to keep his bakery open because his access to flour was primarily on the black market which is seeing price hikes of more than 1,000% since the Russian invasion. He now only bakes when customers pay upfront, has increased his prices by 50%, and fears he will soon have to shut down his business.
https://qz.com/2133068/conflict-in-ukraine-could-hit-lebanons-food-supply/
https://www.latimes.com/world-nation/story/2022-03-17/war-ukraine-kyiv-try-keep-life-going
https://www.middleeastmonitor.com/20220228-ukraine-war-threatens-to-make-bread-a-luxury-in-the-middle-east/
https://www.newsweek.com/bread-prices-may-rise-ukraine-halts-exports-china-sees-poor-harvest-1686416
It's very easy to only think of gas and energy shortages when you think of the crisis in Ukraine as that is what is primarily shown on the news. It is interesting to learn that agriculture is also being impacted and there is a shortage of wheat in Beirut.
ReplyDeleteWe are still dealing with the shortage of gas as prices keep increasing. I learned from this article about how agriculture is now being impacted. I remember my mom talking about how a lot of things at stores are out of stock, so that connects the real world to what I am learning in class.
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