Page 34 - The European Baking Ingredients Market Report 2022 - Volume 2

European Baking Ingredients Market Report 2022
INKWOOD RESEARCH
34 Ukrainan war

THE IMPACT OF WAR IN UKRAINE ON THE EUROPE BAKED GOODS &

BAKERY INGREDIENTS MARKET

The Ukraine War has led to sunflower seeds in the marketing phosphate required to produce
disruption in supply chain and year 2022-2023 (September to fertilizers thereby fertilizer costs are
logistics coupled with rising fuel August), a 42.6% decrease from rising, which is further are predicted
prices has had an adverse effect the previous marketing year's to aggravate the food crisis.
on the bakery market. Ukraine is output of 16.4 million tons, while
a major sunflower, corn, soybean, exports are expected to drop Moreover, Europe has been
wheat, and barley grower. More by roughly 1.7 times, from 1.7 witnessing rise in cost of living and
over 70% of the country's territory million tons to 1 million tons. This inflation due to rising energy prices.
is dedicated to agricultural also presents a dilemma for food This is having a need effect on the
production, making it Europe's formulators, as some have been purchasing power of citizens and
"breadbasket." obliged to substitute alternate the consumption of bakery items
vegetable oils for the component. will be limited to essential food items.
In addition, Ukraine and Russia Palm oil and coconut oil appear to
are a major exporter of sunflower be the most popular substitutes There has been a whooping
and wheat which are the key thus far. increase of bread prices with some
ingredients for the preparation of European countries witnessing
bakery products. Ukraine plans Also, Russia alone exports around 30.40% rise (refer to figure 1) in
to harvest 9.4 million tons of 20% of nitrogen and 10% of bread prices.

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