Bread Prices May Rise as Ukraine Halts Exports, China Sees Poor Harvest

The Ukrainian government announced Wednesday it will ban the export of agricultural products like wheat to make sure its citizens are fed amid Russia's invasion. The lack of wheat exports will affect the world's wheat supply chain, especially in the Middle East and North Africa region (MENA), according to the Middle East Institute (MEI). Adding to food insecurity fears is the fact that China's agricultural minister said the country's winter wheat crop this year could be the "worst in history," Reuters reported.

Together, these two situations could mean some of the world's most populous countries will face supply shortages in the coming months. Russia and Ukraine are the world's first and fifth top wheat exporters, respectively, and accounted for more than 25 percent of globally exported wheat in 2020, according to the World's Top Exports site.

In a statement posted to Facebook and the government's website, Roman Leshchenko, Ukraine's minister of agrarian policy and food, announced the ban on wheat, oats, millet, buckwheat, sugar, salt, cattle and beef. He said the measure was implemented to prevent a "humanitarian crisis" in Ukraine, promote "market stability" and "meet the needs of the population in critical food products."

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