Food prices in Canada to rise as Russia invades Ukraine, ‘Europe’s breadbasket’

Prices on wheat are soaring as a result of Russia's invasion of Ukraine, a key grain exporter in Europe. Expect prices to rise beyond the bakery as a result, experts say.

Russia‘s invasion of Ukraine is already turning up the heat on commodity prices like wheat and oil, with experts saying a prolonged conflict could have a significant impact on food price inflation in Canada.

Russian attacks forced Ukraine to shut down its commercial shipping port Thursday, affecting the country’s major grain exports. Ukraine ships corn and barley to global buyers and also competes with Russia as a major wheat exporter in the continent.

Together, the two countries account for 29 per cent of global wheat production, according to Reuters.

Markets have already taken notice of the potential for Russia’s unprecedented act of aggression to disrupt food supply chains.

Futures prices for wheat spiked as high as US$9.30 a bushel on Thursday, setting a nine-year record.

“Ukraine is Europe’s breadbasket,” says Sylvain Charlebois, director of the Agri-Food Analytics Lab at the University of Dalhousie.

With oil prices meanwhile up over US$100 a barrel, Canada’s grocery sector is about to get hit hard as costs rise on commodities and transportation, Charlebois tells Global News.

“We do have a trucking economy in North America, so that’s going to be problematic… (it will) obviously will make our food inflation situation much worse in the western world and also in Canada,” he says.