Food and Feed price alert from FAO

The food and feed price warning came from FAO. The United Nations Food and Agriculture Organization (FAO) has published a preliminary assessment report on the importance of Russia and Ukraine to global agriculture and the impact of the ongoing war between the two countries on the agricultural product market. It was reported that it was unclear whether grain crops could be harvested in a conflict. The report, which includes that Russia's exports may be interrupted by international sanctions, said, "The initial assessment shows that 20 percent to 30 percent of the fields used to grow winter cereals, corn, and sunflowers in Ukraine will not be planted or harvested in the 2022/23 season." Energy risks in agriculture are included in the FAO report, and agriculture, where Russia is also an important supplier in the global energy market and which is a highly energy-intensive sector, especially in developed countries, will inevitably be affected by the sharp increase in energy prices due to the conflict.

The number of undernourished people will increase

Emphasizing that international food and feed prices could increase between 8 percent and 20 percent due to the supply deficit that will arise due to the war in Ukraine, the report pointed out that this would increase the number of malnourished people in the world. In the report, it was stated that Russia and Ukraine are among the world's most important agricultural commodity producers, and these countries account for more than one-third of global grain exports, providing 19 percent of the world's barley supply, 14 percent of wheat, and 4 percent of corn. FAO also stated that Russia ranks first in the world in fertilizer exports with the advantage of its extensive energy resources.