by PressExperts: grains shortage will lead to a global food crisis
What causes the grain crop shortage in the world
The tense geopolitical situation in the world has affected all sectors of the global market, and humanity will have to cope with its consequences for a long time to come. The agricultural sector was the first to feel the negative impact of the current situation. Analysts predict grain crop shortages, which will most likely lead to a food catastrophe. This is evidenced by the market prices, which have reached record highs and continue to rise. The rise in price is observed in the background of increased demand, sanctions against one of the major exporters, and the reduction of supplies from other producers. Weather conditions also aggravate the situation, for example, in the United States as a result of drought the winter wheat harvest decreased by 60% compared to the previous period.
Last year, the price of wheat on the global market rose by 69%, and given the tensions in the geopolitical arena, the situation could get out of control and lead to serious consequences. The barley price rose by 82% and the corn price — by 36%. Experts do not exclude that by the end of the year these values will increase significantly.
The drought has caused serious losses for Texas farmers, and producers from Kansas and Oklahoma, which are considered the top grain-growing centers in the United States. Analysts estimate the nation hasn’t seen such a drop in precipitation since 2018. Parts of Kansas haven’t had rain or snow since the fall of 2021, a catastrophic shortfall for winter wheat growth. It is planted in the fall, gains needed nutrients and moisture over the winter, and active growth begins in the spring. And in this case, it is important to have enough moisture, which this season was not. The situation is aggravated for American farmers by strong winds, which blow away the top layer of soil, exposing already weak sprouts. Analysts predict that drought conditions will continue into the future.
Reduced supplies from the two main wheat exporters led to an increase in the price of grain — since February it rose by 77%. It is agricultural producers from Ukraine and Russia that are the main importers for Asian and African countries, food security in Egypt, Turkey, Pakistan, Libya, and others depends on their supplies. China, which is the largest importer of barley and corn, has already felt the lack of grain.
According to FAO experts, the rise in prices for agricultural products will continue and may reach 8-22%. Negative consequences of the price hikes will be felt by about half of the countries in the world. It should also be taken into account that wheat is a key commodity for 35% of the world’s population, and there is no alternative to it. Analyzing all these facts, it is easy to conclude that the world market is threatened by a serious crisis.