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The breadbasket of Europe is burning! Uzbekistan and Russia account for 1/3 of the world's wheat exports, and the prices of bread and cooking oil may rise On February 24, 2022, Russia went to war with Ukraine, putting pressure on the supply chain again after nearly two years of the global epidemic. Among them, Ukraine and Russia account for 1/3 of the world's wheat exports, and sunflower oil is as high as 80%, which makes food factories that have already felt the rising pressure of raw materials more nervous. "This is the darkest period in Europe since World War II," said Ukrainian Foreign Minister Dmytro Kuleba. After Russia declared war on February 24, 2022, not only the nationals of the two countries, neighboring countries and Western countries fell into political wrestling, but the global economy and trade, especially food supply, were also greatly affected. James Withers, executive director of the Scottish Food and Drink Industry Association, announced on the same day: "In addition to the humanitarian issues that are life-threatening, today is undoubtedly a day of major crisis for global food security and prices." Spokesperson of the United Nations World Food Program (World Food Program) Steve Taravella also said: "The number of hungry people in the world is increasing rapidly. The main reason is human struggle. The current situation in the world really cannot bear more conflicts." The war between Ukraine and Russia started on February 24, 2022. Not only is the local food supply tight, but Ukrainian and Russian agricultural products such as wheat and sunflower oil are also threatened. The black soil of Ukraine, the granary of Europe, is fertile! Ukraine and Russia account for 1/3 of global wheat exports According to Food Navigator, a professional food media, Ukraine exports 12% of the world's wheat, 18% of barley, and 16% of corn. Coupled with Russia's large land area, the two countries combined accounted for nearly 1/3 of the world's wheat exports, 19% of corn, and up to 80% of sunflower oil exports! Ukrainian black soil is fertile and has strong moisture retention. It has the highest arable farmland in Europe, so it is called "Europe's granary". Farming life pointed out that it is not an exaggeration to say that the "Huang Xiaoyu (soybean, corn, wheat)" produced in Ukraine can feed at least 600 million people in the world. The global price rise of the new crown epidemic! 858 million people worldwide are hungry The United Nations World Food Program warns that the Middle East, South Asia, and North Africa rely heavily on the agriculture of Ukraine and Russia, and the war will only exacerbate food shortages. According to United Nations statistics as of March 1, 2022, a total of 858 million people in the world are starving, scattered in 92 countries. The lack of work and shipping barriers caused by the new crown epidemic, coupled with poor production due to extreme weather in recent years, the United Nations pointed out that this is the moment when global food prices are the highest since 2011. In this war, nearly 70% of the wheat in Egypt and Turkey, relying on imports from Ukraine and Russia, was the most affected. National Development Council: Taiwan has no short-term impact! Food factory, pastry association: very nervous Taiwan's imports from Ukraine include sunflower seeds, corn, wheat, miscellaneous wheat, and sorghum. Although Chen Jizhong, chairman of the Council of Agriculture, stated that the domestic supply of Huang Xiaoyu will be stable in the next six months, and the Ministry of Economic Affairs also said that Ukraine’s trade volume will account for less than 1%, but it can be seen from the global inflation that will occur in the second half of 2021 that It is impossible for the price increase of international materials not to affect Taiwan. On March 1, 2022, Wu Minghui, director of the Economic Development Division of the Development Council of the State Council, said frankly that although Taiwan's economy stabilized in January, the Russian-Ukrainian war will inevitably bring price pressure, which will first be reflected in the stock price index and energy trade prices. The real impact on food is not big. Under the turmoil in global trade, wheat products such as flour, pasta, and bread may be affected in the future. The Bakery Association stated in March 2022 that the bakery industry is quite nervous in the face of this wave of war. International shipping prices are already rising. If soybeans and edible oil rise in the future, it will definitely hit the bakery industry hard. Hong Yaokun, chairman of Fushou, an oil company, also said that the cost pressure is quite high, including Huang Xiaoyu and edible oil, which have long been increasing in price. Since ancient times, wars will inevitably consume a lot of manpower and resources, stop food production, cause instability, and cause global trade turmoil. In addition to the immediate life crisis and humanitarian issues, the Ukrainian-Russian War is bound to have a far-reaching impact on the global food supply.
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