Schroders: Ukraine crisis spells 'real risk' of global food shortages

$30trn needs to be invested

Russia’s status as a key exporter of wheat and fertiliser products means there is now a “real risk of future food shortages” as a result of the Ukraine crisis, according to the managers of Schroders’ Global Resource Equities fund, who believe $30trn needs to be invested between now and 2050 to create more sustainable food and water system.

In a recent update on Schroders' website, co-managers Felix Odey, Alexander Monk and Mark Lacey said many investors have been focusing on Russia's role as a key supplier of global oil and gas, but pointed out that Russia and Ukraine account for approximately 30% of the world's wheat exports. "Clearly, disruption to the export of wheat will have ramifications for consumers in terms of both availability and price," they said. "It is emerging markets that are likely to see a disproportionate impact given they have been the traditional destination of Russian wheat. "In recent years, the t...