It is estimated that the Russia-Ukraine conflict will make the global commodity price soar. Global market has seen tension for weeks. Conflict and sanctions are likely to drive up food and energy prices, hence push Europe into severe supply crisis.
Russia had already anticipated that their lack of meat supply won’t meet their domestic demand, therefore they had signed a free-trade-agreement with Brazil which allowed the access of 200000 tons of Brazilian beef and 100000 tons of Brazilian pork with zero import tax. It’s very likely that Russia will ban the export of these products in the future. But Russia remains a major exporter of meat to Vietnam, with Russian company Miratorg along exported 30000 tons of pork to Vietnam.
In terms of poultry, Russia’s poultry production dropped by 2% declining to 6200000 tons, with its biggest manufacturer Cherkizovo producing 813000 tons, among which 62000 tons were mainly exported to China. Russia is likely to keep these products within domestic market due to potential sanctions likely to be imposed on Russia’s trade partners.
On the other hand, Ukraine is one of the world’s largest poultry producers, and it’s estimated to keep its meat within its own territory to supply military and population. Nevertheless, Ukraine is highly dependent on Russian natural gas and oil. It’s predicted that Ukraine’s supply chain of natural gas and oil will be cut off until new suppliers emerge. Meanwhile, following consequences will be felt all over the world until the global market adjust itself to cope with the hard-pressing warfare situation in Europe.
Source: Europe meat news.