The geopolitical tension around the world’s major grain producer – Ukraine – has provoked the sharpest food price hike in the last two years, the March UN FAO report reads. The Food Price Index grew to 208.1 points in February, or up 2.6% year-on-year. However, the report makes a reservation that the Index increase cannot be explained solely by the Ukrainian factor.

The USDA predicted before the crisis in Ukraine that the country would become the world’s fifth top wheat exporter and the third top corn exporter this season. Ukraine sells most of its export grain to Egypt and other Near East and African countries.  At the same time, roughly 10% of Ukrainian export grain passes through the ports of Crimea, which is now actually occupied by “unidentified” (Russian) troops and, according to the latest information, is preparing to become a constituent region of the Russian Federation.
 

UkrAgroConsult