Ukraine is sometimes referred to as the bread basket of Europe because of its extensive wheat production. Together with Russia it provides approximately 26.4 % of the World’s wheat in 2018. See graphic on left.
Europe is very dependent on wheat for animal nutrition as well as human nutrition. Imagine all the food products that depend on wheat, from the simple loaf of bread to things like pasta or cake. The European union consumes 107,650 thousand metric tons of wheat per year, only surpassed by china which uses 148,500 thousand metric tons per annum.
Why is this so important?
What makes the concept of this bread basket important is how fragile it is, it is dangerous to have 2 countries provide over a quarter of the world’s supply. If for some reason the export of produce from this area is reduced or stopped, the consequences can be countries in dire need of food having to increase prices or simply having to reduce import and usage.
The Ukraine – Russia conflict
Russia began its invasion of Ukraine after several years of tense political interactions, on the 24th of February 2022 claiming that it wasn’t an invasion but a special military operation. This however has caused most of the world to turn against Russia, though for fear of conflict no country has sent troops into Ukraine.
Instead of turning to conflict most countries have decided to welcome and aid refugees. These same countries, especially those in the west have decided that the best way to punish Russia is to target it’s economy and they have placed tariffs or blocked the export of goods from Russia, the most noticeable being oil and natural gas. These bans and tariffs also relate to Russian wheat, making it almost unexportable to Europe and to the rest of the world. Additionally, with a war in Ukraine and over 2 million civilians already out of the country we can consider its wheat production this year to be non-existent. And depending on how the conflict evolves it might take a few years to get wheat production and exportation back to normal.
What does this mean in terms of wheat?
If the wheat from Russia cannot be exported and Ukraine cannot produce any due to the war over a quarter of the world’s wheat is compromised. A wheat shortage in richer countries might be observed by an increase in product prices but in lower income countries the effect could be much worst and many people could end up without necessary food.
So, what’s next?
It is important for people to keep up with the news to understand what is happening in the world. By following the progress of this conflict, you may be able to check on the progress of the war and hopefully see the end of the war entirely.
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