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CED’s Policy Backgrounders provide timely insights on prominent business and economic policy issues facing the nation.
In its March 2022 report, The Conference Board reported that before the war Russia and Ukraine together produced six percent of cereals as a share of world output and combined supplied 16 percent of global exports of grains. Many countries, particularly in the Middle East and Africa, depend on grains from the region. In addition, Ukraine has contributed heavily to the World Food Programme (as has Russia); the absence of Ukrainian grain could put several countries at greater risk of famine. When the war began, concern mounted over an impending food crisis; throughout the conflict, a number of countries have banned exports of grains and cooking oils to address domestic shortages or domestic price inflation. While shortages and food price inflation have eased somewhat in recent months, many countries, particularly in the Middle East and Africa, remain at risk for food insecurity. While rebound production in Canada and the northern plains of the US eased production shortages, there remains risk of price surges in the months ahead.
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