G7 countries in a recent announcement have pleaded with all the member countries to not restrict or limit their food exports in order to self-sustain or battle out with other countries amid the Russia-Ukraine war. Shipments from Russia and Ukraine are halted due to the war.
G7 countries consist of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Most of these countries are battling out the suddenly barred trade from Russia and Ukraine, both of which are the top food-related industries.
Russia – The Largest Fertiliser Exporter
Russia is the top exporter and one of the largest producers of fertilisers in the world. It produces 50 million tons of fertilisers annually and accounts for about 15% of the world’s fertiliser exports. The exports of Russian fertilisers are represented below in the Russia export data 2021-2022.
The worry for the fertilisers from Russia is prevalent since if countries can’t import from Russia and/or Ukraine, many have to rely on agricultural activities. The raw materials to implement agriculture practices will be another tough task for countries to tackle. Below represented data features the values for Russian fertilisers exported to G7 countries for the year 2021.
Read More: Global Discussion On Agri-Products Trade At UKCOP26 Conference
G7 Countries Worry Food Prices
As per FAO, the G7 countries and ministers conducted a meeting on the uncertainties for food and its market prices. The food price index (FPI) in February 2022 reached 21% above the year-earlier to 2021. COVID-19 already fuelled the prices of commodities around the world and rose FPI from 2020 to skyrocket in 2021, which is further propelled by the Russian invasion of Ukraine.
Read More: COVID-19 Influenced The Biggest Growth Of Global Inflation
In terms of the top exported commodities, the exports of G7 countries comprise: Cereals ($51 Billion), Beverages ($50 Billion), Oil Seeds & Grains ($46 Billion), Edible Meat ($43 Billion), Edible Preparations ($29 Billion), Dairy Products ($28 Billion), Pastry cooks’ Products ($25 Billion), Edible Fruits & Nuts ($20 Billion), Fish ($18 Billion), Animal Or Vegetable Fats & Oils ($17 Billion).
The G7 countries comprised of significant values in exporting the food and agricultural products to the world and to each other. It seems that each country can fulfil the requirements of food and agriculture commodities with or without the shipments from Russia and Ukraine. Wheat and sunflower oil might be a rabbit hole in this to solve, but other products will have minor obstacles.