{"id":11848,"date":"2024-03-07T19:14:47","date_gmt":"2024-03-07T18:14:47","guid":{"rendered":"https:\/\/fei-online.com\/?p=11848"},"modified":"2024-03-07T19:17:02","modified_gmt":"2024-03-07T18:17:02","slug":"how-the-russian-invasion-of-ukraine-has-impacted-the-global-wheat-market","status":"publish","type":"post","link":"https:\/\/fei-online.com\/how-the-russian-invasion-of-ukraine-has-impacted-the-global-wheat-market\/","title":{"rendered":"How the Russian invasion of Ukraine has impacted the global wheat market"},"content":{"rendered":"<div id='av_section_1'  class='avia-section main_color avia-section-default avia-no-border-styling  avia-bg-style-scroll  avia-builder-el-0  avia-builder-el-no-sibling   container_wrap fullsize' style=' '  ><div class='container' ><main  role=\"main\" itemprop=\"mainContentOfPage\"  class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-11848'><div class='entry-content-wrapper clearfix'>\n<div class=\"flex_column av_one_fifth  flex_column_div av-zero-column-padding first  avia-builder-el-1  el_before_av_three_fifth  avia-builder-el-first  \" style='border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '   itemprop=\"text\" ><p style=\"text-align: center\"><div id=\"ads-slider-28\" class=\"custom-slider ads-slider-420265686 ads-slider\"><ul><li><!--Begin ClixTrac.com Banner Code -->\r\n<a href=\"https:\/\/clixtrac.com\/goto\/?308404\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/clixtrac.com\/banner\/308404.jpg\" alt=\"Free from food\" title=\"Free from food\" border=\"0\" \/><\/a>\r\n<!--End ClixTrac.com Banner Code --><\/li><li><!--Begin ClixTrac.com Banner Code -->\r\n<a href=\"https:\/\/clixtrac.com\/banner\/click.php?banner=302805\" target=\"_blank\" rel=\"noopener\">\r\n<img decoding=\"async\" src=\"https:\/\/clixtrac.com\/banner\/302805.jpg\" alt=\"LUBRIPLATE\" title=\"LUBRIPLATE\" border=\"0\" width=\"120\" height=\"600\" \/><\/a>\r\n<!--End ClixTrac.com Banner Code --><\/li><li><div style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"ads-2062476742\"><!--Begin ClixTrac.com Banner Code -->\r\n<a href=\"https:\/\/clixtrac.com\/banner\/click.php?banner=297426\" target=\"_blank\" rel=\"noopener\">\r\n<img decoding=\"async\" width=\"100%\" height=\"auto\" src=\"https:\/\/clixtrac.com\/banner\/297426.jpg\" alt=\"Click here for more information!\" title=\"Click here for more information!\" border=\"0\" \/><\/a>\r\n<!--End ClixTrac.com Banner Code --><\/div><\/li><\/ul><\/div><script>( window.advanced_ads_ready || jQuery( document ).ready ).call( null, function() {var $adsslider420265686 = jQuery( \".ads-slider-420265686\" );$adsslider420265686.on( \"unslider.ready\", function() { jQuery( \"div.custom-slider ul li\" ).css( \"display\", \"block\" ); });$adsslider420265686.unslider({ delay:5000, autoplay:true, nav:false, arrows:false, infinite:true });$adsslider420265686.on(\"mouseover\", function(){$adsslider420265686.unslider(\"stop\");}).on(\"mouseout\", function() {$adsslider420265686.unslider(\"start\");});});<\/script><\/p>\n<\/div><\/section><\/div><div class=\"flex_column av_three_fifth  flex_column_div av-zero-column-padding   avia-builder-el-3  el_after_av_one_fifth  el_before_av_one_fifth  \" style='border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '   itemprop=\"text\" ><p style=\"text-align: center\"><\/p>\n<\/div><\/section><br \/>\n<section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '   itemprop=\"text\" ><header class=\"entry-content-header\"><h1 class=\"post-title entry-title\" itemprop=\"headline\">How the Russian invasion of Ukraine has impacted the global wheat market<\/h1><span class=\"post-meta-infos\">\/ <span class=\"blog-categories minor-meta\">in <a href=\"https:\/\/fei-online.com\/category\/e-news\/\" rel=\"tag\">E-News<\/a> <\/span><\/span><\/header>\n<\/div><\/section><br \/>\n<section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '   itemprop=\"text\" ><h3>Russia\u2019s invasion of Ukraine in February 2022 caused an immediate disruption in the global wheat market, with serious implications for food prices and global food security. Wheat is a staple commodity in many countries and one of the most extensively traded crops worldwide. A new paper [1] published in World Development, January 2024, from the University of Illinois Urbana-Champaign and Texas Tech University examines the long-term impacts of the war in Ukraine on global wheat prices and market responses.<\/h3>\n<p class=\"wp-more-tag mce-wp-more\" title=\"Read more...\" data-wp-more=\"more\" data-wp-more-text=\"\" data-mce-placeholder=\"1\"><!--more--><\/p>\n<p>\u201cWe present a comprehensive, holistic picture of the global wheat market. Our analysis looks at export-import linkages between individual countries to evaluate how trade and prices have adjusted,\u201d said co-author William Ridley, assistant professor in the Department of Agricultural and Consumer Economics, part of the College of Agricultural, Consumer and Environmental Sciences (ACES) at U. of I.<\/p>\n<p>\u201cAt the start of the invasion, everybody was really concerned there was going to be an explosion in wheat prices. We did see a massive spike in prices, but eventually, the market adjusted and price impacts levelled out,\u201d he added.<\/p>\n<p>Global wheat prices jumped by 28% in the early phases of the war, but within a few months, they began to decrease, although they remain 2-3% higher than before the invasion.<\/p>\n<p>Price increases of 2-3% may not seem like a lot, but it comes on top of ongoing global inflation, and it contributes to worsening food insecurity in many poor countries that are already suffering from high prices and inadequate supply of staple foods, Ridley said.<\/p>\n<\/div><\/section><br \/>\n<div   class='hr hr-default   avia-builder-el-7  el_after_av_textblock  el_before_av_image '><span class='hr-inner ' ><span class='hr-inner-style'><\/span><\/span><\/div><br \/>\n<div  class='avia-image-container  av-styling-    avia-builder-el-8  el_after_av_hr  el_before_av_hr  avia-align-center '  itemprop=\"image\" itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/ImageObject\"  ><div class='avia-image-container-inner'><div class='avia-image-overlay-wrap'><img class='avia_image' src='https:\/\/fei-online.com\/wp-content\/uploads\/sites\/4\/2024\/03\/shutterstock_277371086-scaled.jpg' alt='' title='Field,Of,Wheat,And,Sun' height=\"1701\" width=\"2560\"  itemprop=\"thumbnailUrl\"  \/><\/div><\/div><\/div><br \/>\n<div   class='hr hr-default   avia-builder-el-9  el_after_av_image  el_before_av_textblock '><span class='hr-inner ' ><span class='hr-inner-style'><\/span><\/span><\/div><br \/>\n<section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '   itemprop=\"text\" ><h4>Where wheat is grown around the world<\/h4>\n<p>Wheat is grown in at least 97 countries around the world, according to Ridley. But some of the major producers, including China and India, primarily grow for domestic consumption and only a handful of countries supply most of the global market. Ukraine is the world\u2019s ninth-largest wheat producer and fifth-largest exporter, with the majority of exports going to Africa, Asia, and the Middle East.<\/p>\n<p>Ridley and co-author Stephen Devadoss analyzed bilateral trade flows for 42 major wheat-producing and consuming countries<br \/>\nor regions, looking at how changes in Ukraine\u2019s production and exports affected the global wheat market over time.<\/p>\n<p>The invasion caused disruptions in Ukraine\u2019s wheat production as wheat-producing regions in the south and east of the country were under attack. The war has also damaged infrastructure and disrupted transportation, which affected Ukraine\u2019s ability to export to foreign markets.<\/p>\n<p>The Black Sea Grain Initiative, an agreement between Russia, Ukraine, Turkey, and the United Nations, was established to ensure the safe passage of grain from Ukraine through the Black Sea. However, Russia eventually withdrew from the agreement, which has now expired.<\/p>\n<h4>Ukraine\u2019s major export markets<\/h4>\n<p>Ukraine\u2019s exports to major markets, including Egypt, Indonesia, Bangladesh, Pakistan, and Lebanon, fell dramatically following the invasion. These countries are large wheat importers because of their own limited supply, and they typically received 25% to 50% of their wheat from Ukraine prior to the conflict. Ridley and Devadoss found other wheat-exporting countries increased their production in response to the higher wheat prices. Ukrainian exports were eventually replaced by other large producers, primarily the United States, Canada, and Australia. Russia also increased their exports substantially.<\/p>\n<p>The results suggest that Russia has exploited the perilous situation to export more wheat at the expense of Ukraine, the researchers noted. The findings also have implications for the design of international food policy.<\/p>\n<p>\u201cMultilateral policies ensuring a stable supply of food and removing Russia\u2019s ability to exploit hunger and food insecurity as a geopolitical tool could be effective means to combat their war effort,\u201d Ridley said.<\/p>\n<p>\u201cFurthermore, this situation shows how a localized disruption can have ripple effects on global markets,\u201d he added. \u201cA conflict on the other side of the world is going to affect producers and consumers in the U.S. whether we trade with these countries or not.\u201d<\/p>\n<p><em><strong>Reference<\/strong><\/em><\/p>\n<p><em>1. Devadoss S., Ridley W., Impacts of the Russian invasion of Ukraine on the global wheat market.<\/em><br \/>\n<em> World Development. Vol 173, January 2024. doi: <\/em><a href=\"https:\/\/doi.org\/10.1016\/j.worlddev.2023.106396\" target=\"_blank\" rel=\"noopener\"><em>https:\/\/doi.org\/10.1016\/j.worlddev.2023.106396<\/em><\/a><\/p>\n<\/div><\/section><br \/>\n<div  class='av-social-sharing-box  avia-builder-el-11  el_after_av_textblock  avia-builder-el-last  av-social-sharing-box-minimal '><div class='av-share-box'><h5 class='av-share-link-description av-no-toc '>Share this<\/h5><ul class='av-share-box-list noLightbox'><li class='av-share-link av-social-link-facebook' ><a target=\"_blank\" aria-label=\"Share on Facebook\" href='https:\/\/www.facebook.com\/sharer.php?u=https:\/\/fei-online.com\/how-the-russian-invasion-of-ukraine-has-impacted-the-global-wheat-market\/&#038;t=How%20the%20Russian%20invasion%20of%20Ukraine%20has%20impacted%20the%20global%20wheat%20market' aria-hidden='false' data-av_icon='\ue8f3' data-av_iconfont='entypo-fontello' title='' data-avia-related-tooltip='Share on Facebook' rel=\"noopener\"><span class='avia_hidden_link_text'>Share on Facebook<\/span><\/a><\/li><li class='av-share-link av-social-link-twitter' ><a target=\"_blank\" aria-label=\"Share on Twitter\" href='https:\/\/twitter.com\/share?text=How%20the%20Russian%20invasion%20of%20Ukraine%20has%20impacted%20the%20global%20wheat%20market&#038;url=https:\/\/fei-online.com\/?p=11848' aria-hidden='false' data-av_icon='\ue8f1' data-av_iconfont='entypo-fontello' title='' data-avia-related-tooltip='Share on Twitter' rel=\"noopener\"><span class='avia_hidden_link_text'>Share on Twitter<\/span><\/a><\/li><li class='av-share-link av-social-link-whatsapp' ><a target=\"_blank\" aria-label=\"Share on WhatsApp\" href='https:\/\/api.whatsapp.com\/send?text=https:\/\/fei-online.com\/how-the-russian-invasion-of-ukraine-has-impacted-the-global-wheat-market\/' aria-hidden='false' data-av_icon='\uf232' data-av_iconfont='entypo-fontello' title='' data-avia-related-tooltip='Share on WhatsApp' rel=\"noopener\"><span class='avia_hidden_link_text'>Share on WhatsApp<\/span><\/a><\/li><li class='av-share-link av-social-link-linkedin' ><a target=\"_blank\" aria-label=\"Share on LinkedIn\" href='https:\/\/linkedin.com\/shareArticle?mini=true&#038;title=How%20the%20Russian%20invasion%20of%20Ukraine%20has%20impacted%20the%20global%20wheat%20market&#038;url=https:\/\/fei-online.com\/how-the-russian-invasion-of-ukraine-has-impacted-the-global-wheat-market\/' aria-hidden='false' data-av_icon='\ue8fc' data-av_iconfont='entypo-fontello' title='' data-avia-related-tooltip='Share on LinkedIn' rel=\"noopener\"><span class='avia_hidden_link_text'>Share on LinkedIn<\/span><\/a><\/li><li class='av-share-link av-social-link-mail' ><a  aria-label=\"Share by Mail\" href='mailto:?subject=How%20the%20Russian%20invasion%20of%20Ukraine%20has%20impacted%20the%20global%20wheat%20market&#038;body=https:\/\/fei-online.com\/how-the-russian-invasion-of-ukraine-has-impacted-the-global-wheat-market\/' aria-hidden='false' data-av_icon='\ue805' data-av_iconfont='entypo-fontello' title='' data-avia-related-tooltip='Share by Mail'><span class='avia_hidden_link_text'>Share by Mail<\/span><\/a><\/li><\/ul><\/div><\/div><\/p><\/div><div class=\"flex_column av_one_fifth  flex_column_div av-zero-column-padding   avia-builder-el-12  el_after_av_three_fifth  avia-builder-el-last  \" style='border-radius:0px; 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Wheat is a staple commodity in many countries and one of the most extensively traded crops worldwide. A new paper [1] published in World Development, January 2024, from the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":11849,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/posts\/11848"}],"collection":[{"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/comments?post=11848"}],"version-history":[{"count":2,"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/posts\/11848\/revisions"}],"predecessor-version":[{"id":11851,"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/posts\/11848\/revisions\/11851"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/media\/11849"}],"wp:attachment":[{"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/media?parent=11848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/categories?post=11848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fei-online.com\/wp-json\/wp\/v2\/tags?post=11848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}