The British Meat Processors Association (BMPA) has said that UK producers should expect further rises on the price of wheat if the ‘landmark’ deal between Ukraine and Russia on the global exports of wheat is not upheld.
A deal between Ukraine and Russia to resume exports of wheat through the Black Sea was signed on Friday 22nd July, which was hailed by the UN as potentially ending world supply issues of the essential ingredient. The deal was signed by representatives from Turkey, Ukraine, Russia and Secretary General Antonio Guterres.
Nick Allen, chief executive of the BMPA said: “As soon as the deal was announced, we immediately saw a reduction in the wheat price, which was truly welcomed by pig and poultry farmers and much needed given the escalating costs of production. If the deal doesn’t happen, wheat prices will rise again putting farmers under even more intense pressure. In that situation, we would expect to see a drop in production and an increase in meat prices at home.”
The Russian Federation and Ukraine, combined, have accounted for around 30% and 20% of global wheat and maize exports, respectively, over the past three years.
On Sunday 24th July, reports from the Russian government said that it had carried a missile strike on several vessels on the port of Odesa. A Ukrainian military vessel and a number of US-supplied Harpoon anti-ship missiles have been destroyed.
Since then, representatives from Kyiv have said preparations remain under way to resume the grain exports.
A spokesperson for the Association of Independent Meat Suppliers (AIMS), Tony Goodger, said that the trade body welcomed the prospect of more gain coming onto the world market as “this may help to bring the cost of feed down and in turn reduce the input costs for pigs and poultry during the present cost of living crisis.”
He added that reports of the attack on Odesa are “troubling”“, and that “now is a time for cool heads diplomatically and the need for all to see the wider picture.”
