The impact of Ukraine’s war on the food market
Accounting and Finance Master program group
Abstract
The Russian-Ukraine war, which started on 24 February 2022, has
resulted in significant damage to all economic activities in
Ukraine, including
agriculture, which is a key driver of economic activity. While the
situation in Ukraine remains dynamic and unpredictable, there is
growing evidence that loss of income, supply chain disruptions,
increasing
prices and dependency on food assistance have significantly
affected the access to and affordability of food. This study
contains a descriptive analysis and literature review of the war’s
impact on the global food market, as Russia and Ukraine play
essential roles in world food production and trade supply chains.
Introduction
The war's impact on global food supply will depend on its
duration and the evolution of various scenarios. The war has
however pushed other countries such as the US, Australia and
Brazil to increase exports of commodities including wheat to fill
the gap left by Russia and consequently meet current demand.
In this research, we going to gather and analyze deeply all the
significant descriptive metrics to gain credible insight about
what's happening behind the scene of the Russian-Ukrainian
war. After then be able to conclude several hypothesis that we'll
measure them statistically to de define the impact of this war on
the worldwide food market on a large scale to sincerely respond
to our following problematic: What's the impact of ukraines war
on the food Market ?
Vistula University
Firstly, we applied Qualitative research as a methodology
designed to collect non-numerical data to gain insights. The
collected information seeks to describe our topic more than
measure it. This type of research considers attributes and ideas
which become a hypothesis to be proven through quantitative
research.
Consequently, we applied Quantitative research as expressed in
numbers and graphs, for statistical analysis in order to validate our
hypothesis. The Quantitative data is in numerical form such as
Russia and Ukraine's Share in Agriculture export
statistics, percentages, etc. with this research methodology, we
analyzed data gathered from qualitative research to yield an
unbiased result that can be generalized to some larger population
in various faculties.
In this parts we will focus on the importance of Russia and
Ukraine to international agriculture industry. It includes Ukraine
and Russia's share in global agriculture markets such as wheat,
barley, maize, and sunflower. It also includes impacts of conflict
on wheat, oilseed and gains market.
Contribution of Russia and Ukraine to global
Russia and Ukraine’s war has a huge consequences on agricultural
Agriculture market product prices, and because of that the inflation reached the highest
• North Africa and middle east import over 50% of cereal from level in a lot of countries,
Ukraine and Russia.
The table below includes price changes for the commodities such
• Ukraine is an important supplier of maize to the EU and China as wheat, com, soybean, cotton, crude palm oil, sugar, urea, etc
• Yemen, Bangladesh, Pakistan, Sudan and Nigeria are major food
importers for Russia and Ukraine Commodity Marsh 2, 2022 Month ago Year ago
Wheat 1,058.50 755.00 663.25
Corn 739.00 622.5 560.75
This table below covers graphical representation of global food Soybean 1677.50 1,545.25 1,414.00
exports from Ukraine and Russia Cotton 138.7 141.5 94.25
Russia Ukraine War Causing Global food crisis
Escalation of conflict involving such important global agricultural
commodity market players, at a time when international food and
input prices are already high and volatile, raises serious concerns
about the potential negative impact on food security, both
domestically and internationally and it caused
• Crucial portion of the world's wheat, com, and barley is trapped
in Russia and Ukraine
• Large portion of the world's fertilizers is stuck in Russia and
Belarus
Russia and Ukraine are key agricultural players, together exporting
nearly 12 % of food calories traded globally. They are major
providers of basic agro-commodities, including wheat, maize and
sunflower oil, and Russia is the world's top exporter of fertilizers.
Several regions are highly dependent on imports from these two
countries for their basic food supply. Russia and Ukraine, World Food Program's costs have increased by 71 million/month,
combined, supply over 50 % of cereal imports in North Africa and enough co cut daily rations for 3.8 million people which can lead
the Middle East, while Eastern African countries import 72 % of us the high hunger risk
their cereals from Russia and 18 % from Ukraine.