Ukraine is a player in the global agriculture economy. It is the world’s 3rd largest exporter of corn and 5th largest exporter of wheat.
The turmoil going on in Europe’s breadbasket is affecting our markets here at home. The wheat market spiked and now we are selling the remaining of our 2013 wheat. For the moment, Ukraine’s misfortune is our opportunity.
Now what happens if this continues and Russia gains control of Ukraine? The region Russia is supposedly wants is known as Crimea. It is where the main port is. It is also where Russia has a naval base.
A few thoughts:
- Those who control the food & fuel supply control the people. Europe’s food, fiber and fuel flow through the Ukraine.
- While the US grain markets are benefitting from the turmoil what does this mean long-term for the world food supply if it continues?
- My friend Jeff shared these thoughts on his facebook, and I cannot disagree:
Sadly, The United States currently has a weak administration. Putin does not respond nor does he care if he is breaking some international law so a stern talking to is not going to stop him. Plus, is there a law that has stopped a criminal yet?
What does the future of agriculture look like if no one steps up and puts Russia in its place? What are your thoughts on the subject as a whole?