Market Update Commodities March 2022
19 March 2022

As we came into 2022, coming off the back of COVID-19, we were already seeing significant cost challenges, with global supply issues driving significant inflation.

Unfortunately, the conflict in Ukraine has led to a further unprecedented surge in the costs of ingredients, packaging, transportation and energy, which are significant parts of our business.

The rising tension in the Black Sea region adds to the risks faced by global food markets, which are already struggling with high prices; supply-chain disruptions; and a bumpy recovery from the COVID-19 pandemic.

The area planted in Ukraine will suffer a drastic reduction due to the on-going conflict. Analysts further point out that due to the partial suspension of trading with Russia there will be additional price challenges.

The 2022/23 scenario is also at risk, because the next agricultural year will start with low initial stocks at a global level.

 

Full report here.

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