The global economy is quite messy right now and it is affecting all facets of people’s lives. Most western economies are taking steps to fight inflation and the consensus is that we will likely face some kind of recession. As much as we lament our situation in the United States, our friends across the Atlantic seem to have things worse. Not only are they facing inflation, but geopolitical problems in the Black Sea have them in an energy crunch as well.
Dr. Al Mussell is a research lead at Agri-Food Economic Systems, and he says Europe is already facing smaller harvests of food crops because of their situation.
It isn’t just the Russian invasion and annexation of parts of Ukraine that has created this situation, but it hasn’t made things any better. Grain stock inventories have not been built up for the past five years in Europe. This will be further exacerbated by fertilizer shortages that seem to be a foregone conclusion in the next year.
The global marketplace is in a position where demand is outstripping supply. Many countries rely on exports of wheat and other goods from Europe and Ukraine. These tightening supplies are going to drive more customers to the United States and South America for supplies. Supplies that are worrying about continued drought from La Niña. Dr. Mussell says it isn’t panic time, and producers can make it through these tough times with a little planning.