Ukraine's MP's, members of the Verkhovna Rada Committee on Agrarian and Land Policy, reiterate: “The war has radically changed all the achievements of Ukraine's export potential, as seaports are blocked by Russia and the Black Sea water area is mined. The blockade of Ukrainian ports by the occupiers will cause a global food crisis."
According to the Centre for Global Development, the war in Ukraine has already led to a significant increase in energy and food prices. At least 40 million people will find themselves in extreme poverty due to the jump in prices in 2022. Buyers of Ukrainian wheat will suffer the most. However, the prices will rise worldwide as importers compete for alternative sources of supply. The Centre for Global Development emphasises that households in low-income countries spend almost half of their budget on food. Rising prices will force them to make a difficult choice "between food and other necessities".
50% of the grain that the World Food Program (WFP) buys to help 125 million people is produced in Ukraine. According to WFP, rising food, delivery and fuel prices have surged WFP's operating costs by $71 million per month. This has already created a deficit of 10 billion dollars next year and forced to begin to normalise the supply of food for people who need it most.
The World Food Program fed 125 million people worldwide before the war in Ukraine. As of now, they have had to start cutting food kits due to rising food, fuel and delivery costs. For example, in war-torn Yemen, 8 million people have had their food kits cut by 50%, and the World Food Program is now considering closing the program in the region. Almost half of Yemen grain demand depends on Ukrainian supplies.
Europe is also suffering because of the war in Ukraine. In Germany, for example, demand for oil and flour has risen sharply. According to the data, oil sales in retail in just one week from March 7 to 13 saw prices skyrocketing by more than twice (plus 123%) than in September 2021. During the same period, the demand for flour even tripled (plus 206%). Ukraine has already lost $1.5 billion due to the suspension of exports. Therefore, negotiations are now underway to send agricultural exports through European seaports. In addition, the an option to use railway transportation, increase in the volume of transit traffic by freight transport are being discussed.
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