Asia faces food shortages as Russia-Ukraine fighting hits shipments

Heavy fighting closes off parts of the Black Sea, affecting shipments of wheat, oats and other cereals to Asia upsetting supply chains

Disturbance could create domino effect on production of other consumer foods, but Australia hopes to fill the part of the demand

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An aerial view shows corn stalks planted by Ukrainian farmers outside Kyiv, Ukraine July 2021. Photo: Reuters

Published: 7:44pm, 4 Mar 2022Updated: 12:36pm, 9 Mar 2022

Asian economies, already facing skyrocketing prices as a result of the Russia-Ukraine conflict, are being hit with food shortages as shipments are cancelled and delivery routes upended, analysts say.

At least eight Black Sea corn cargoes set aside for Asian importers had been cancelled since the start of the week with some buyers rushing to find replacements from other countries, commodities analyst S&P Global Commodity Insights said on Friday.

Those who can get hold of bulk supplies of corn – mainly imported for animal feed – were slugged with high prices which hit their highest since 2016 at just over US$412 a tonne, according to price assessments conducted by S&P.

The price of corn has risen 17 per cent since the start of the war, according to S&P.

“Asian buyers and sellers are in a scramble for corn and wheat supplies as supply has been cut off from the Black Sea,” commodities analyst S&P Global Commodity Insights said.

“Buyers are now prepared to pay higher for corn arriving in three to four months to North Asia because their search for prompt arrivals has been unsuccessful.”