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Russo-Ukrainian war severely impacts European food and essential goods exports

2022-12-23

The Russo-Ukraine war impacted the world on multiple levels. UN Secretary-General Antonio Guterres said he was seeking talks with both countries to restart crop and fertilizer production in both places. In addition to driving up global oil prices and disrupting supply chains, exports of food and essential goods produced in the two places have also been restricted, particularly affecting European countries. Many food manufacturers in the UK have expressed that they have to absorb the rising costs and even seek other solutions.


Butler's farm is located in South West England. In addition to growing rapeseed and wheat, he also raises dairy and beef cattle. Since the start of the war between Russia and Ukraine, not only the price of oil has soared, but also the fertilizer and feed from the two countries have plummeted.


Butler, a farmer in the United Kingdom, said: "Everyone is worried that we are facing a global food crisis. As I said, the current situation may take a year to ferment. But if the global farmers' production declines, this will affect supply. Yet demand remains strong."


Russia and Ukraine supply 60% of the world's sunflower oil. Supply is in short supply, and many manufacturers in the UK can only work around it. The snack maker switched to homegrown canola oil, which costs twice as much.


Locke, founder of the British snack company, said: "This is indeed the most challenging trading environment in the ten years I have been in the business. Supply chain problems, inflation, it is really very difficult to do business at this time."


Supply chain problems are also hitting the rest of Europe. In Germany, people are worried about food shortages and are rushing to buy necessities.


Experts point out that the crisis has forced Europe to expand its supply sources and seek ways to strengthen supply chains.