FAO: Global grain supplies to decline again

Next year, the supply of wheat in the world will decrease again, Head of the UN Food and Agriculture Organization (FAO) in Azerbaijan Melek Cakmak said, Report informs.

She noted that supplies have been affected by Russia’s war with Ukraine: “These countries are the largest grain producers in the world. In Ukraine, because of the war, farmers cannot go to the fields, some roads are destroyed, 8 million people are displaced, 4 million people left the country.

Most likely, 20-30% of the land in the world that was sown earlier won’t be sown this year. Comparing demand in 2021-2022 and stocks in 2022, we see that there will be no change in grain stocks in 2022.”

She believes that due to the war, rising tariffs, as well as changing terms of trade, the demand for grain in the world has decreased: “But if we look at the harvest and supply of wheat this year, the demand in 2023, the level of use in warehouses will fall by about 0.5%. That is, the supply of wheat next year will be reduced. However, the situation with grain stocks is better than in 2007-2008. Whole grain importing countries, as well as producers and consumers in Ukraine, will suffer from this food crisis and reduced grain production, as well as rising prices. In all countries, vulnerable people will suffer from inflation.”