Higher food prices expected as war in Ukraine adds strain to supply chains

clock • 4 min read
Higher food prices expected as war in Ukraine adds strain to supply chains

Beyond the tragedy of war in Ukraine, Russia’s invasion of the former Soviet state is adding further strain to already struggling key supply chains that could ultimately lead to higher food prices and even shortages, experts have warned.

Before war broke out in Ukraine, countries across the globe were already contending with supply chain bottlenecks. Europe and Asia were both feeling the effects of a natural gas "crunch" noted Russell Vincett, portfolio manager at BlueBay Asset Management. Natural gas is the key raw material in the production of nitrogen fertilisers.  Since Putin began his ‘special military operation' in Ukraine, the supply of natural gas-produced industrial ammonia and other mineral and chemical-based fertilisers will also be disrupted as Russia accounts for around 15% of global trade in nitrogenous fer...

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