Conflict in Ukraine disrupts global food supply chain: Ukrainian official
Ukraine's agricultural output has been seriously affected by the ongoing conflict and a much worse consequence is likely to take place in the fall if this year's planting season is also impacted, said a senior official of the Ukrainian government.
Speaking with China Global Television Network, Tymofiy Mylovanov, advisor to the head of the Ukrainian Presidential Office and former Economy Minister, noted the current situation has not affected Ukraine's domestic food supply but it has dealt a heavy blow to food exports.
"I think we have about 10 million hectares, which are safe, and maybe another 15 which are okay, another five (to) seven which are not okay. I think 10 million is enough for Ukraine for sure, but it's going to severely limit the export because I dare say our export now is blockaded, so it cannot export. Even this year you have about five million tons that were still sitting and we cannot export them and won't be able to export them. So it's already go hit the global supply chains now," said Mylovanov.
What concerns Mylovanov now is the prospects in the second half of the year as a prolonged conflict could drastically affect the food supply chain.
"But if we don't have a proper planting season, there's going to be maybe reduction of five to 10 percent of world supply in the fall. That's going to create a food crisis logistically locally. So probably it's not going to hurt the rich economies, developed economies, because they'll just price it out and they'll buy it at higher prices. But it might force some economies in the Middle East, in Asia, and in Africa to substitute for something else, and so that's going to be a problem," he said.