Contemporary Business

Environment Presented by :
Case study – An insight into the food catastrophe GROUP - 3
DEEPIKA 28045
DEVESH 28046
DHRUTI 28047
DINESH 28048
 Contemporary Business Environment
Refers to circumstances and ideas of the present time in a
business environment (Modern Business)
INTRODUCTION It also refers to understanding the market economy and the
developments
 Main focus – Global food crisis 
 The world is leading towards a situation of mass hunger 
 Russia’s invasion in Ukraine along with destroying lives , ruined the
country –  forthcoming future and also impacted the economy
Case study –  Weakened food system – Covid -19 , War and Climate Change 

Insights  Global food shortage – Causes famine , starvation , poverty and

high costs of grains leads to unaffordability of basic meals
 Two major problems that created an unrest in the economy 
 Impact of Climate Change 
 Impact of War 
 UNDERSTANDING THE IMPACT
IMPACT OF CLIMATE CHANGE
• World’s largest producer of
China wheat – Delayed rains –
Lead to the worst crop
• 2nd largest producer –
India Extreme temperatures –
Lack of rainfall – Sap yields
• Worst drought in last 4
Africa
decades
All of this will have a prominent impact on
the poor and middle class. The emerging
households spends more than quarter
percentage of their earnings on food
consumption.
IMPACT OF WAR
Russia lacking suppliers –
No storage for the new Initially they bought it from
harvest – Leading the European Union and now
harvest to rot they no longer supply them.
War
Prices are volatile impact
Political Unrest
Shrinking profit margins
Mainly due to war – 23
due to increase in prices
of fertilizers and energy countries have restricted
exports and this has made
trade to stop which has lead
to the emergence of famine
  Pull their act together
 Keep the markets open for trade
 Lift ban on exports
 Help countries in imports and exports – Open up different modes
of transports

What can be  Emergency supplies should be given to the countries which

require them the most (Poorest)
done ?  Financial aid – IMF and Debt Relief
 Substitution – Grains are used to make fuels
 Countries need to be brough on one side and help restore the
market
Russia , Ukraine and Turkey – Allow shipping , De-mines (Clear its
mine) and Allow naval escorts respectively
 WAR, EXTREME WEATHER AND TRADE
RESTRICTIONS

• Farmers in several Ukrainian districts are having a terrible

time because of the conflict with Russia. The crops from
their farms, which the Russian army destroyed, killed their
animals and ruined their infrastructure. The farmers now
have a challenging task to restore regular output levels. The
primary export port, located in Odessa, has been shut down
by Russian forces. Unfortunately, it is also difficult to
access alternative export routes.
• Now let's discuss how the production of food grains has been
affected by the terrible weather. We learned through the case
study that an Indian farmer expressed his worries about the
country's erratic and inconsistent weather. The majority of
the regions had unusual weather that was out of the ordinary
for this time of year. Numerous farmers all around the
country have reported disappointing yields.
• The Indian government agreed to forbid the export of wheat
on May 13th, but only with the precise stipulation that it
would permit export to nations in need. Such restrictions are
already in place in many nations, which has had a significant
negative influence on hunger worldwide. Around 4/5 of the
nations in the world are importers, thus such sanctions will
have an impact on them.
• According to the UN's World Food Programme, the number
of people whose access to food was so inadequate that their
lives or means of support were in immediate danger
increased from 108 million to 193 million over the previous
five years.
• More than 18% of the world's grain and more than 20% of its calories travel
over at least one border before they are consumed.
• 2021 saw Russia and Ukraine rank first and fifth in the world in terms of
wheat exports, shipping 39 million tonnes and 17 million tonnes,
respectively, accounting for 28% of the global market. They also produce a
lot of grain for animal feed, including maize and barley, and are the world's
top and second producers of sunflower seeds, respectively, accounting for
11.5% of the global vegetable oil market. They supply about one eighth of
the calories traded globally in total.
• It might be challenging to transfer suppliers because buyers and exporters
frequently have established channels of commerce and long-standing
bilateral connections. Nearly 50 nations, including 26 countries, buy more
than 30% of their wheat from either Russia or Ukraine, or both, according
to the UN's Food and Agriculture Organization (FAO).
 On Russia's tight hold:

 World's biggest natural gas

exporter
The ropes short
end  2nd biggest oil exporter

 Biggest exporter
of Nitrogen based fertiliser 
 Acute food shortage • Fertilizers
• pesticides

• Climate change Cultivation changes

Effects  • La Nina & El Nino

• Rain for crop cultivation

• Trade of Food commodities between nations
• Alternatives
 Increase in cost of commodities

Search for Alternatives

Food price inflation on non- war affected

commodities
 FLAT AND UNPROFITABLE

Input prices goes Switch to crops

up – farmers with lower input
margin falls cost (maize to
down soyabeans)
 People go hungry even in the richest economies

Debt burden
EFFECT OF
CRISIS
Government are poorly placed to help their
citizen
Biofuel production has increased markedly in
America, Brazil and Europe as the oil price risen.

Food eaten by animals is vast

FOOD
SHORTAGE
Feed by using substitutes -  drives up the price of
the end product
 Higher interest rates drag down currencies and tighten financial conditions

Falling currency - makes food imports costly

CURRENCY
FLUCTUATION To blaster their currency – either to increase interest rates or use currency
reserves

The World Bank sees the war’s effects
on trade and welfare as representing a reduction in global real income of about
0.74%, or $600bn
THANK YOU