Russia-Ukraine war and grain…

03 March 20222 min reading
Mustafa Yağmurlu

Dear readers,

We are together with the 50th issue of our magazine.

The war between Russia and Ukraine, a human tragedy, deeply affects world trade. While oil prices reached 100 dollars along with the war, wheat prices hit a 13-year high in the Chicago stock market due to the concern that the war would harm the global supply. 

The conflict between the two important players in world agricultural product exports negatively affects global trade. More than one-third of the global wheat trade is carried out by these two countries. 

War not only negatively affects commercial relations but also destroys all that is beautiful. The whole world will be adversely affected by this war, but not as much as Turkey. The sectors that will be affected the most in Turkey will be grains and oilseeds. This is because we import most of the raw materials for wheat and sunflower oil production from Ukraine and Russia.

Turkey imported 5.6 million tons of wheat from Russia and 1.4 million tons from Ukraine in 2021. It imported 724 thousand tons of crude sunflower oil from Russia and 42 thousand tons from Ukraine last year. Merely the difficulties to be experienced in the import of these two raw materials will have devastating effects on companies engaged in wheat, edible oil, and pastry products. We all hope that this crisis will be resolved as soon as possible.

We procure most of the bread wheat and crude sunflower oil from Russia and Ukraine. The problems to be experienced in the supply of these raw materials or in the prices will negatively affect the producers and consumers.

See you in the next issue…

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