How Ukraine, Russia war affects local wheat exports
YUMA, Ariz. (KYMA, KECY) - The Russia Ukraine war is threatening to cut off some international shipments of wheat, causing shortages and pushing the price of this vital crop higher when supply chain disruptions have already sent food costs up.
But how is this affecting local wheat producers at home?
According to the Associated Press, Ukraine and Russia account for a third of global wheat and barley exports.
The Desert Southwest Region produces 250 thousand tons of wheat a year and of those, Barkley Seed Company alone, produces 150 to 180 tons per year.
But so far, none of this wheat is going to countries impacted by the war.
Countries in the Middle East, along with Asia and Africa, rely on Ukraine and Russia to feed millions of people who live on subsidized bread and bargain noodles.
Michael Edgar has been exporting wheat out of the desert southwest region since 1980 and shares his thoughts on what’s to come for the wheat industry.
“So when the Ukraine war broke out, you lost over 35 million tons of exports coming out of that region known as the black sea so the customers who were normally buying that wheat, has to rush out and find sources from some other area, that would include Canada, the United States and Australia,” said Edgar.
However, he says the wheat exported out of Yuma will most likely not be affected at this time.
“Chances are probably not because most of the wheat that’s coming out of that region is bread wheat, used to manufacture bread. All the wheat that’s grown here in the desert southwest is durum wheat that’s used to manufacture pasta. Now when all markets go up it raises prices for everything,” explained Edgar.
He says the prices will be passed on to the consumer.
“The amount of wheat in a loaf of bread is not very much. The real question is going to be the cost of transportation, the people that are involved, the entire process is going to become more expensive, not just the price of wheat,” said Edgar.
Disruptions and price increase for wheat, as well as the cost of fuel and fertilizer, could further disturb global food markets and threaten social stability, according to the New York Times.
