Is A Global Famine About To Be On The Way?

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The threat to wheat supplies from Russia’s invasion of Ukraine has been exacerbated by a shift in global stocks away from major exporters such as the United States and European Union, undermining their effectiveness as a cushion in times of crisis, Reuters reported.

Now, the devastating effects cause major concerns across the Middle East and North Africa that the war in Ukraine will send prices of staple foods soaring as wheat supplies are hit, potentially fuelling unrest.

Russia and Ukraine supply a quarter of the world’s wheat exports, while Egypt is the world’s biggest importer of wheat. 33% of all wheat exports among the top ten exporters came from Russia and Ukraine combined.

Look carefully at the following chart below:

Infographic: The Biggest Exporters of Wheat in the World | Statista

That’s the grim assessment of many experts on global food security, who point to how heavily the rest of the world relies on Ukraine and Russia for wheat and a slew of other essential commodities.

As that supply is cut off, it will drive up food prices that are already at record levels – and at a time when the economic fallout from the pandemic has already pinched household budgets, most devastatingly in low-income countries.

Russia’s invasion of Ukraine is highly likely to disrupt Ukraine’s ability to fully plant and harvest wheat in 2022. And Russia will be blocked, in theory at least, from being able to accept U.S. dollars for its wheat export.

On March 9 President Putin signed an order banning the exports of some goods and raw materials:

The order includes a ban or restrictions on “exports outside of the Russian Federation’s territory and (or) imports to the Russian Federation’s territory of products and (or) raw materials,” according to an Interfax news agency translation of the order released on Tuesday.

The Gateway Pundit noted:

While wheat is not mentioned specifically in this order, those who have bought wheat from Russia in the past will need to consider very seriously whether they will be able to buy Russian grain this year. There are two possible terrible scenarios. First, because of the war Ukraine will not be able to plant its crop. No crop, no exports.

Second, Russia will keep all of its wheat at home to ensure its citizens have enough to eat. That means those parts of the world that depended on Russia as its grocer will have to find an alternative supply and will have to pay substantially higher prices if they can find another country able to fill the demand.

But that is only the beginning of the looming agricultural disaster for the anti-Russian world. One word–POTASH. Potash is a key ingredient in producing fertilizer.

The potash component corrects the deficiency of potassium in the soil. As a natural mineral, potash is an important nutrient that enhances water retention, disease resistance and general crop productivity.

So take a close look at the following chart:

The World’s Leading Producers of Potash

Rank Country Potash Production (Tonnes, Millions)
1 Canada 12
2 Russia 7.2
3 Belarus 6.4
4 China 6.2
5 Germayn 2.9
6 Israel 0.2
7 Jordan 1.3
8 Chile 1.2
9 Spain 0.7
10 United States 0.5

 

For the record, 37% of the top ten producers of potash in the world came from Russia and Belarus. Now that Biden sanctioned Belarus, its potash supply will not be available to the world.

Not just that, the price of fertilizer already has doubled compared to a year ago, with Russia’s sanctions, the world is now at a major deficit in having fertilizer to put on crops.

Meaning farmers in the Midwest who are planning to plant corn and soy beans will be paying twice as much for fertilizer. And that is not all. The price of diesel fuel–i.e., the juice that makes tractors, planters and harvesters run–also has doubled.

The Gateway Pundit concluded:

When it comes to oil, wheat and potash Russia is holding some powerful trump cards that can be used to hurt the West and its erstwhile allies.

I would suggest the time has come for those Americans blinded by their hatred of Russia based on a false narrative peddled recklessly by a pliant media, to take off the blinders and take a serious look at the implications of a fast approaching future where key Russian and Ukrainian exports will not be available. There is one guarantee for the world–rampant, high inflation.

Sources: Thegatewaypundit, BusinessInsider, Reuters