Soaring wheat prices and concerns over fertilizer supplies following Russia’s invasion of Ukraine will likely put further pressure on already high food prices.
Wheat prices touched a 14-year high yesterday on supply concerns. Russia and Ukraine combined produce 14% of global wheat and supply almost one third of all wheat exports, according to Gro-Intelligence, an agricultural data analytics company.
The two countries are also significant exporters of barley, corn and sunflower oil.
Russia is also one of the biggest exporters of the three major groups of fertilizers: nitrogen, phosphorus, and potassium.
Rising fuel costs and supply disruptions, alongside strong global demand, have already pushed food prices higher.
Grocery prices rose at their fastest rate in more than eight years in February, according to data from market analysts Kantar published yesterday.
Food prices were also the main driver as overall UK shop prices rose at the fastest rate in a decade, the British Retail Consortium said today.