Photo: Colourbox.dk

Food prices affected by Russian invasion

A number of products will become more expensive for individuals living in Denmark. But we do not have a situation where there will be a shortage of food in Danish supermarkets.

Ukraine and Russia produce 31 per cent of the world’s wheat. Russia’s invasion of Ukraine will therefore be felt by individuals living here, as we have to deal with rising food prices.

Historically high food prices

Global food prices have reached their highest level ever as shown in a new report from the Food and Agriculture Organization of the United Nations (FAO).

The FAO Food Price Index (FFPI), reflecting the development of prices of the 95 most traded agricultural products on commodity exchanges, has broken the historical price peaks of 2008 and 2011.

The FFPI has risen seven percentage points since the beginning of the year, and more than 20 percentage points over the past year.

Bread and cereal products will become more expensive

Ukraine and Russia produce 31 per cent of the world’s wheat. Russia’s invasion of Ukraine will therefore have an impact on all foods, including those with wheat.

The war means that the price of certain goods is likely to rise. The first are bread and cereal products.

It is too early to say how much the prices will increase or when they will fall again to the usual levels that we know.

It is important to underline that there will be no shortage of food in Danish supermarkets, as we have strong supply chains and we produce a lot ourselves.

Who will be hit the hardest?

All in Denmark will notice an increase in the price of certain foods. The price of feed and fertilizers will also increase, which will increase the cost of agriculture.

Can I replace food products from Russia and Ukraine?

You can replace products from Russia and Ukraine with goods from other countries to a certain extent, but you will probably have to pay more.

In addition to products with wheat, corn, barley and sunflower seeds becoming more expensive, you can also expect that this will have an effect on other goods. We typically import wheat, corn and barley from Russia and Ukraine, as well as sunflower seeds, oil and meal from Ukraine.

What is the state doing to mitigate the sharp price increases for Danish consumers?

Together with the EU, Denmark will keep a close eye on developments in the food sectors in the coming days, weeks and months. We fortunately have a robust food and agricultural sector in the EU, where we have also seen the great strengths of the single market during the COVID-19 pandemic. Denmark collaborates closely with its neighbours and international organisations in relation to global developments in food markets.