TYLER, TX (EAST TEXAS NEWS) – Among the places that the Russia-Ukraine war will affect for residents of East Texas is the grocery store.
Ukraine is a major player when it comes to agriculture, with what has been described as one of the richest soils on Earth. On Wednesday, the Ukrainian government prohibited exports of rye, barley, buckwheat, sugar, salt and meat through the end of the year.
“We are talking about the impacts on the global food supply chain and the global food supply as we consider the impacts of the war in Ukraine,” said Gary Joiner, director of communications for the Texas Farm Bureau.
Joiner said that farming is so important to Ukraine that its flag is a symbol of it. The blue and yellow flag represents a golden wheat field under a clear blue sky.
“The big crops that we all associate with Ukraine are wheat, corn, and vegetable oils like sunflower,” said Joiner. “Those are the country’s main exports. Those exports have stopped. It’s possible those crops won’t be produced this spring due to the effects of the war.”
Joiner said that Texans can expect a domino effect from rising food costs due to that shortage, but he said the greatest impact will be felt abroad.
“The most dramatic impact, of course, will be in Europe, where there could actually be food shortages,” he said.
Dr. Mark Welch, economist with Texas A&M’s AgriLife Extension Service, said that wheat is one of the commodities most likely to be affected. He noted that in terms of food security, the United States will be fine since the country typically exports about half of the wheat it produces. He did, however, say that the global market impacts will translate into higher grocery-store prices.
“If you put Ukraine and Russia together in the current marketing year, they are expected to account for just under 30% of the world’s wheat exports,” Welch said. “If you look at the value of the wheat contained in a loaf of bread, we’re talking about roughly 10% of its value derived from the wheat in that loaf. It’s all the other things needed to move it from the farm to the grocery store that contribute much, much more to the total price.”
And it’s not only consumers who feel the pain, but also Texas farmers and ranchers who were already dealing with higher prices even before the war began.
“One of the inputs that Texas farmers and ranchers depend on most is fertilizer,” Joiner said. “And those inputs are directly linked, in some cases, to Russia, Ukraine, and those areas of Europe where some of those ingredients and fertilizers are produced.”
And given that fertilizer costs are already 300 to 400 percent higher than last year, Joiner said it’s likely the ongoing war will push prices even higher.
“It’s a delicate situation,” he said. “Many are worried that if those prices do not stabilize soon, it could be a very difficult 2022 for Texas farmers and ranchers.”
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