DelVal Agribusiness Faculty Gives Expert Opinion on KYW Podcast: How the Russian Invasion of Ukraine Impacts Agriculture

by Nicole McMahon

Doylestown, PA (03/18/2022) — John Urbanchuk in the Department of Agribusiness at Delaware Valley University joins Matt Leone on KYW Newsradio's podcast, "In Depth," to discuss disruptions in agriculture due to the Russian invasion of Ukraine.

The increase in energy prices worldwide is having major effects on global food markets. In the episode, you'll hear Urbanchuk shed light on how commodities like wheat, corn, and fertilizer are being impacted and how rising costs in global food markets are causing countries to prepare for supply chain disruptions.

"You're seeing all grain markets being adversely affected as a consequence of the Russian invasion of the Ukraine. The wheat markets are most significantly impacted because Russia and Ukraine are significant players in world trade for wheat," Urbanchuk explains in the episode.

"The wheat we consume in the U.S., for example, white bread, the farmers share of a dollar spent on white bread is only four cents. That means 96 cents of that dollar is taken up by the processor, distributor, and retailer, and that's where the energy costs really come into play. Transportation costs, processing, all of these factors have a significant impact on the market," Urbanchuk emphasizes.

"People go to the grocery store and they think the farmers are gouging prices, but it's not the farmers. It's everybody from the farm to the retailer and that's something people should keep in mind. It's a very complex system and it's too easy to point and blame any particular sector."

As the conflict in Ukraine continues, Urbanchuk predicts we may have a difficult few months ahead for the global market in regard to how much commodities and crops will be planted, what production will be like, and how it will yield.

Discover more of this conversation when you listen to the full episode by clicking here.