Food import export: what are the main risks due to the Ukrainian-Russian conflict?

The recent – and unfortunately still ongoing – delicate situation between Ukraine and Russia, the  import export sector is experiencing changes that cannot be overlooked.

The two Nations are in fact among the main food products exporters, says the “Food and Agriculture Organization of the United Nations”. The Russian invasion of Ukraine has threatened the balance of a trade situation already weakened by two years of pandemic emergency on a continental level.

In 2022, food prices rose to all-time highs precisely due to the resumption of the post-COVID 19 supply chain. Nonetheless, as Bruegel reports, the anticipated production prospects for the 2022-23 winter harvests are favorable both in Ukraine than in the Russian Federation.

But the conflict could prevent farmers from looking after their fields, harvesting and harvesting their crops, while it can also negatively affect agricultural activities.

Will prices remain high?

The risk, even for small Italian producers, is the constant increase in costs. In fact, farmers – explains Coldiretti – have recently been forced to face price increases of up to 50% for the diesel fuel necessary for working the land, to which is added the surge in the cost of gas, essential for the production of fertilizers and which has dramatically increased the cost of fertilizers.

As if that weren’t enough, there are fears in Ukraine that the conflict could cause damage to internal transport and storage infrastructures, and to seaports.

The request for help to the European Union

Italy together with 12 other countries launches an SOS to the European Union for agriculture asking for exceptional temporary support to be activated in the context of rural development, in response to the unprecedented crisis and its impact on agricultural production systems and on food safety.

“The proposal is important to simplify the disbursement of EU funds to businesses in a time of great emergency but at EU level more courage and resources are needed to improve our food security by reducing our dependence on imports of the main agricultural products and production factors” affirms the president of Coldiretti Ettore Prandini.

He declares: “Investments are needed to increase the production and yields of land with rainwater storage basins to combat drought but it is also necessary to seriously combat the invasion of wildlife that is forcing land abandonment in many inland areas and support public research with technological innovation and Nbt in support of production, the protection of biodiversity and as a tool in response to climate change”.

In conclusion

Touchpoint helps small and medium-sized food entrepreneurs of the most renowned gastronomic excellences in Italy to increase sales opportunities abroad. In the articles of our blog we are committed to disseminating updates on the situation of the food import export.