The military conflict between Russia and Ukraine continues to create a ripple effect through the global food supply. Truck drivers have led compassionate efforts to support the Ukrainian people, as a war thousands of miles away teaches everyone valuable lessons about supply chain vulnerabilities.
“Soon, what is a disaster for farmers here will become one for elsewhere in the world,” Ukraine farmer Kees Huizinga reportedly said. “When they can’t get our food.”
Agricultural uncertainty in Ukraine drove the price of wheat up to record highs at the beginning of March. Although American farmers produce upwards of 1.65 billion bushels on more than 37.2 million acres annually, Ukraine reportedly accounts for 10 percent of the world’s wheat and approximately 50 percent of all sunflower oil. Growers in the worn-torn country lack fertilizer, farmhands, and some have crops trapped behind Russian lines. Others are wavering whether to plant and risk failed crops. The Wall Street Journal reports that “wheat futures are up 42 percent so far this year; the price of corn has risen 27 percent.”
In another era, the shockwaves from the European war might have sidelined American and Canadian truckers who haul imported food resources. However, the 80,000-plus truck driver shortfall is something of a blessing for men and women who make a living hauling produce.
Although the humanitarian and economic focus has been centered on Ukraine, consumers around the world may experience another wave of inflation due to reduced Russian exports. Despite the fact American politicians vilified Russian Pres. Vladimir Putin long before the invasion, upwards of 25 countries relied on Russia and Ukraine for nearly half of their imports. The U.S. ran a significant trade deficit before recent sanctions. For example, the Office of the United States Trade Representative reported the following numbers based on 2019 data.
- U.S. goods and services trade with Russia totaled an estimated $34.9 billion in 2019
- Russia was the United States’ 20th largest supplier of goods imports in 2019.
- U.S. goods imports from Russia totaled $22.3 billion in 2019, up 6.8 percent ($1.4 billion) from 2018, up 22.3 percent from 2009.
- U.S. total imports of agricultural products from Russia totaled $69 million in 2019. Leading categories include: snack foods ($8 million), tree nuts ($6 million), other vegetable oils ($3 million), essential oils ($3 million), and other dairy products ($2 million).
- The U.S. goods trade deficit with Russia was $16.5 billion in 2019, a 16.1 percent increase ($2.3 billion) over 2018.
Imports from Russia during 2021 reportedly increased to $30.76 billion, with food sources nearing $2 billion, all told.
Several U.S.-based agricultural giants have resisted calls to shut down operations in Russia, knowing that food supply chain interruptions could severely impact people. The Food and Agriculture Organization of the United Nations indicates that upwards of 13 million people could experience hunger due to spiking in food prices and disruptions due to the Russia-Ukraine war.
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