CEM REPORT | The price of wheat in the international market has risen to a record high following Russian invasion of Ukraine. Prices reached a 14-year high at the end of last week.
The commodity is currently selling at EUR 403.50 per ton, a more than 50% rise over a recent period.
Russia and Ukraine account for around 29% of global wheat exports, 19% of global corn supplies, and 80% of the world’s sunflower oil exports. The Russian – Ukraine conflict has disrupted exports of the crop, resulting in considerable shortage in the global market and increased prices.
“We rely heavily on Ukraine and Russia to feed the rest of the world, particularly when it comes to wheat,” said Sylvain Charlebois, professor of food distribution and policy at Halifax’s Dalhousie University.
The reliance on Ukraine for wheat has created a massive scramble by food importers to replace supplies normally sourced from the Black Sea region.
Consequently, cost of wheat based baked products – cake, bread and other confectionaries is sure to rise in the coming days especially in Nigeria as the nation depends majorly on importation of wheat for domestic consumption. Nigeria consume up to 5 million metric tons of wheat annually while local production volume is merely 60,000 tons.
Wheat producers have warned that continuous military force of Russia over Ukraine could trigger a more prolonged shortage as the situation will make it extremely difficult for Ukrainian farmers to cultivate the crop.
The Nigerian situation is of more concern since consumers are already grappling with staggering inflation in the country