Page 20 - The European Baking Ingredients Market Report 2022 - Volume 2

20 European Baking Ingredients
Market Report 2022
Fedima

The impact of developments in

Ukraine on the food sector

he Russian large-scale vulnerable populations. According for some ingredients, such as
invasion of Ukraine on 24th to the Food and Agriculture sunflower oil and other vegetable
February 2022 triggered Organisation (FAO), almost 50 oils, whose replacement gives rise
Tan immediate humanitarian countries, mainly from North Africa to labelling challenges, notably
crisis. It sank the global food supply and Western and Central Asia, due to the allergenicity of their
chain into uncertainty, as both are dependent on Ukraine and alternatives. Despite attempts to
countries are major exporters of Russia for over 30% of their wheat mitigate their impact, the reduction
wheat, cereals, and edible oils. imports. The disruption of Ukraine’s in food exports and the ensuing
Adding to the consequences of grain production combined with price increase is a reality many are
the COVID-19 pandemic and trade restrictions on exports from grappling with.
climate change, the conflict in Russia could threaten global food
Ukraine is having a significant security, especially in economically What is Fedima doing to mitigate
impact on food security, with vulnerable countries. the impact?
global food prices skyrocketing Informing members. Since
and the disruption of the food The European Union, its allies and the beginning of the Russian
supply chain increasing. Russia have adopted extensive invasion, Fedima has closely
sanction packages, including followed the different sanctions
With wheat being a staple food for economic and trade restrictions, packages adopted by the EU
over 35% of the world’s population, which are heavily affecting the and its allies, directed at Russia,
the situation is expected to food industry. As a consequence of as well as their impact on the
deteriorate further, particularly the war in Ukraine, food business food industry. Fedima has
in low-income countries and operators face supply issues provided regular updates on the

Fedima took the lead in drafting a joint

letter to the European Commission on

the consequences of the situation in

Ukraine for the baked goods industry.

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