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Global Wheat Production and Threats to Supply Chains in a Volatile Climate Change and Energy Crisis

Author

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  • Wiktor Halecki

    (Institute of Nature Conservation Polish Academy of Sciences, Mickiewicza 33, 31-120 Kraków, Poland)

  • Dawid Bedla

    (Department of Ecology, Climatology and Air Protection, Faculty of Environmental Engineering and Land Surveying, University of Agriculture in Krakow, Mickiewicza 21, 31-120 Kraków, Poland)

Abstract

As climate change and energy crises increase, NPK (nitrogen, phosphorus and potassium) fertilizer supply chains become more volatile. Globally, the Russian attack on Ukraine has caused the cost of gas to rise and fertilizer supplies to decline. This aggression may worsen the energy and wheat resource crisis in global supply chains. As a result of the escalation of hostilities, natural gas, oil, and coal prices have rapidly increased. In the years preceding the conflict, the agricultural sector had already begun to suffer, caused by unprecedented increases in the prices of natural gas and raw materials for the production of fertilizers stemming from Russian manipulation, especially in the gas market. Prior to the growing season, farmers were still unable to afford fertilizer prices. This situation will be exacerbated by the war. We can conclude from our results that European countries and the United States have high wheat production potential. Developed countries have significant nitrogen, phosphorus, and potassium fertilizer resources. Ukraine has a large yield gap, ranging between 4.5 and 7 Mg/ha. Wheat supply crises can be caused by tense geopolitical affairs, including military aggression and economic embargoes. Based on this, we recommend that decision-makers focus on crop quality to increase the country’s own production.

Suggested Citation

  • Wiktor Halecki & Dawid Bedla, 2022. "Global Wheat Production and Threats to Supply Chains in a Volatile Climate Change and Energy Crisis," Resources, MDPI, vol. 11(12), pages 1-11, December.
    • Handle: RePEc:gam:jresou:v:11:y:2022:i:12:p:118-:d:998991
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    1. László Szőllősi & Adél Dorottya Erdős, 2023. "Income and Asset Situation of Companies Producing Arable Crops in the Visegrad Countries," Agriculture, MDPI, vol. 13(8), pages 1-20, August.
    2. Lenka Novotná & Zuzana Rowland & Svatopluk Janek, 2023. "Impacts of the war on prices of Ukrainian wheat," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(10), pages 404-415.

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