The benchmark U.S. price, at $11.07 a bushel, is 72% higher than a year earlier.
FOOD PRICES RISING IN THE US
The food price problems go beyond energy, fertilizer, and potash.
Food has been skyrocketing in the States. Most recently eggs are rising in price at grocery stores. The reason is a highly pathogenic avian influenza (HPAI) spreading across the US
.
Bloomberg reports HPAI has been detected in commercial poultry operations, backyard farms, and wild flocks up and down the East Coast and across the Midwest since Jan. 26.
The problem has gotten so bad that, according to the Department of Agriculture, millions of chickens and turkeys have had to be culled at poultry farms around the country, Zero Hedge reports.
The result is an ever-increasing price of eggs.
WHEAT SHORTAGE
Further, with the Russian government choking off the “breadbasket of Europe” by attacking Ukraine, the price of grain and all food products dependent on grain or related to grain could also soon skyrocket dramatically.
In April 2021, a ton of wheat cost 165.43 Euros. As of March 2022, wheat cost 398.20 Euros. This trend will continue and intensify.
The main export countries of wheat by export value in 2020 were Russia (17.7 percent world market share), the USA (14.1 percent world market share), Canada (14.1 percent world market share), France (10.1 percent world market share), and Ukraine (8.0 percent world market share),” the report said.
Most American farmers aren’t in a position to take advantage of the current high prices because more than 80% of the season’s wheat has already been sold.
On December 18, 2021, the German Business News predicted in an article entitled “Risk Analysis: Major Inflation Unrest Will Begin in 2022” that the UN’s “Food Price Index” (FAO Food Price Index) will rise steadily. With that Could come global unrest.
SHORTAGE OF FERTILIZER AND POTASH
Wheat exports from Ukraine and Russia via the Black Sea have largely come to a standstill, according to Baywa.
After Russia began its military operation/war in Ukraine on Feb. 24, on that same day, Ukraine’s military halted all commercial activities at its ports in the Black Sea. Also that day, a missile struck a ship chartered by Cargill, according to Reuters.
“That region of the world is a pretty significant producer of key fertilizers or key components to fertilizer, so that is definitely on the minds of farmers,” said Garrett Hawkins, the Missouri Farm Bureau president.
Russia and Belarus (which is Russia’s closest ally and also faces international sanctions) make up more than 40% of the global potash market, according to The Fertilizer Institute.
Russia and Ukraine produce 30% of the world’s wheat.
The increasing prices have resulted in some farmers transitioning to soybeans and other crops that rely less on fertilizer, Reuters reported.
While the U.S. gets 86% of its potash from Canada, there will still likely be global disruptions. However, the extent of those disruptions is yet to be determined, as the U.S. won’t be importing products from Russia.
Several major agriculture companies based in the U.S. have operations in Ukraine.
Bob White, director of national government relations for Indiana Farm Bureau, said the conflict will likely cause a ripple effect in food prices that could eventually affect consumers.
“We import 80% of the fertilizer we use from outside the U.S. so the situation in eastern Europe will affect those supply chain issues around the world,” White said in a statement.
The EU makes enough wheat to sustain itself but 30% of the poorer countries face famine.
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ya that ‘avian flu’ thing likely schemed, engineered, and released by the mega-ignoramus, race-hating, and widely despised Joe Biden as terrorism against Americans.
I remember being warned about Globalization back in the late 1970s when people were destroying Japanese Cars in the streets in protest. This has been a long time in coming. President Trump started doing something about it and was demonized by a bought and paid for media and the Communist Democrats who think Globalism and Dependence is superior to Independence and Self-reliance.
America is in a world of hurt right now. I don’t think Self-reliant Conservatives are in the mood to bail the whiny, lazy, self-absorbed Liberals out this time. America can’t afford anymore free stuff. If Liberals aren’t willing to get off their asses and be producers, their will be a Red State / Blue State divorce and the Blue States will be 3rd world waste lands. A financial service economy that just shuffles money produces nothing; it just redistributes wealth. We have given our producing manufacturing economy to China and Traitor Joe destroyed our energy production capability. Without energy production we can’t even fuel our military. We have nothing but Nuclear Weapons left and they are not a sane option.
Traitor Joe needs to go Immediately. The Election was Stolen and President Trump needs to be in the White House. We need an America First Congress who will figure out how to come up with a Balanced Budge and will go after Corrupt Businessmen and Treasonous Compromised Politicians and Bureaucrats. It is clear the Democrat Party Leaders and RINOs are Hell bent on the Destruction of America. The IMF/WEF New World Order has failed and those who still think it’s possible are insane. We turned over the balance of World Power to Russia and China. They now control Manufacturing and Energy thanks to Traitor Joe and the Democrats. Americans need to save America, because our Politicians and the Bureaucrats have given up on Life, Liberty, and the Pursuit of Happiness! Forget about Europe; they are the Problem.
The planned famine is coming into view.
Gill Bates and the CCP bought up HUGE chunks of farmland for a reason.
The subhuman (sarc) Russians will be blamed during the two minutes hate.
The curses of worldlings are equal to blessings from those that matter.