Ukraine crisis: is food becoming more expensive now?

Wheat price already up

Created: 02/15/2022, 16:39

By: Monja Stolz

Rising wheat prices: Fears of an escalation in the Ukraine crisis are affecting consumers.

© Arne Dedert/dpa

Cereals, wheat, corn and barley are among the most important export products of Ukraine.

Fears of an escalation in the country are driving prices up.

Kassel – One of the most basic things economics teaches you is that uncertainty has a negative impact on stock markets.

Rarely has a crisis created as much uncertainty as the Ukraine conflict.

Here in Germany, this is particularly noticeable in oil and gas prices, but also in wheat and grain prices.

Russia and Ukraine are among the top wheat exporters in the world.

Together they export about 60 million tons of wheat annually - that's about 30 percent of the global wheat trade.

Now that the conflict between the two countries is threatening to escalate*, prices are rising sharply due to concerns about a possible disruption in wheat exports.

In extreme cases, "deliveries of up to 16 million tons of wheat" could be affected, said the raw materials expert at Commerzbank Casten Fritsch.

Wheat is currently being traded for EUR 263.50 per ton.

In comparison: in 2017 it was 175 euros.

This is not only noticeable in the prices for flour.

For consumers, products such as pasta or baked goods are also becoming more expensive as a result of the increased raw material prices.

Wheat supply: Germany is not dependent on Russia and Ukraine

Germany is not solely dependent on Russia and Ukraine for grain supplies.

According to a report by the Federal Office for Agriculture and Food, 43.2 million tons of grain were harvested in Germany in 2020.

At 52 percent, soft wheat is one of the most commonly cultivated types of grain.

According to the Industrieverband Agrar e.

V., so if in doubt, supply them yourself or fall back on other import partners such as the Czech Republic, Poland, France, Lithuania and Canada.

Not only grain prices are affected by the threatened escalation of the conflict, but also oil and gas prices.

So that war does not occur, there are high hopes for the visit of Chancellor Scholz – who recently had to lose poll ratings * because of his course in the Ukraine crisis – with the heads of state Selenskyj and Vladimir Putin.

(Monja Stolz)