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How does the war in Ukraine affect supermarket prices? - Walla! Of money

2022-03-06T07:02:41.205Z


We hear all the time about an expected rise in food prices due to the Russian invasion of Ukraine, but how does the global mechanism that affects food prices work? Here are some examples


How does the war in Ukraine affect supermarket prices?

We hear all the time about an expected rise in food prices due to the Russian invasion of Ukraine, but how does the global mechanism under which food prices are rising work?

And how do we know when this is a real distress of the manufacturer and when he is taking advantage of the situation to make a profit at our expense?

Here are some examples

Roast Greenberg

06/03/2022

Sunday, 06 March 2022, 08:37 Updated: 08:55

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For a long time we have not dealt with the cost of living, or rather the question of whether food prices will rise despite checks?



The unpleasant news is that the Russia-Ukraine war is expected to raise commodity prices even further, after the Kremlin decided to stop the export of fertilizers from Russia to the world market due to shipping problems with foreign logistics companies.

This is according to the Bloomberg website.



Russia, which has experienced international economic sanctions since its invasion of Ukraine, is a huge exporter of fertilizers.

"Russia's loss and its large exports in fertilizers," Alexis Maxwell, a Bloomberg Green Markets analyst, was quoted as saying.



Russia's halt in fertilizer exports adds uncertainty to the global food market, due to the difficulty of farmers in Brazil - the world's largest importer of fertilizers, in obtaining fertilizers already today.

Uncertainty among farmers in South America could spill over into the rest of the world as Brazil is the leading producer of soybeans, coffee and sugar, whose availability will decline in the absence of suitable fertilizers for growing them.

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What is the connection between the human tragedy in Ukraine and the price of coffee from Brazil on the shelves in Israel? (Photo: AP, Vadim Ghirda)

According to train traffic in Canada

Alongside these, the threat of a railway strike in Canada - the world's leading potash supplier, also raises the risk of worsening price inflation and disruptions in the food growing industry.



Fertilizer prices have soared in the past month due to the noticeable natural gas shortage in Europe, which has forced some manufacturers to reduce production, and in some cases even close it.

This is due to the fact that natural gas is a key component in the production of nitrogen-based fertilizers.



The high transport rates, along with extreme weather and sanctions on Belarus, due to the repression of the local ruler, Putin's speech makes the mass protest in his country, which exports about one-fifth of Potash's global supply, also add to the rise in prices.

How do we know who is raising prices because he has no choice and who is taking advantage of the situation?

Not sure we will know (Photo: ShutterStock, Doron Shiner)

UN Food Price Index - an all-time high

The UN Food Prices Index rose by 4% last February, to an all-time high, leading by an 8.5% rise in vegetable oil prices, following a rise in palm oil prices, soybeans and sunflowers, and dairy products, which rose by 6.4% in the same In total, the index increased by 20.7% from February 2021 to February 2022.



The cereal price index also rose by 3% in the same month, with corn prices rising by 5.1% and wheat prices rising by 2.1%, mainly reflecting uncertainty regarding supply Cereals to the international market from Black Sea ports



Ukraine and Russia account for about 80% of global sunflower oil exports, and about 29% of global wheat exports, and alongside Russia's absence from the global fertilizer market, fiercer competition is expected for declining supply, which is expected to lead to further increases



Last Thursday,

the director general of the Ministry of Finance, Ram Blinkov,

was a guest

On the program "Where's the Money" on 103FM radio and warned the various importers and manufacturers not to take advantage of the rising prices of food products blowing in the wake of the war in Europe, to expropriate prices.



It is important to note that the Israeli consumer is already a bit confused as to the reasons for the rise in prices in Israel, which began months before the Russian invasion.

The question is therefore which of the costs is - for local producers and importers - a necessity, when it comes to trying to catch a ride on the unique situation - and when the costs to manufacturers and importers do swell, but still have the power to absorb them, due to the huge profit tensions that characterize Israel.

The director general of the Ministry of Finance, Ram Blinkov, warned the importers not to take advantage of the situation. The problem is that this time some of them will really have no choice (Photo: Nir Landau, Walla system!)

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  • Russia

  • goods

  • Cost of living

Source: walla

All business articles on 2022-03-06

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