Global food prices spiked to an all-time high before the war even began, thanks to the pressure that the Covid pandemic put on supply chains. They have skyrocketed to a new high as the conflict in Ukraine has threatened the food supplies around the world. What will happen next?
Potato protein
Despite producers saying they are going to move away from potato protein to other products (due to high price of seeds and lack of availability) there is no good enough substitute for it, especially when we consider food grade. Potato protein has desirable characteristics that meet manufacturers’ conditions when it comes to human food additives.
Vital Wheat gluten
The Chinese price is relatively the same as the European price. VWG is almost impossible to find and this issue has remained constant for many weeks now. The International Food Policy Research Institute estimates that exports from Russia and Ukraine account for 12 percent of all food calories sold worldwide. Both countries account for nearly 30 percent of global wheat exports. The conclusions on this topic are self-explanatory.
Hydrolyzed
Wheat starch has increased 50% in the last 6 months. The Ukrainian government is working with Poland to fulfill contracts with e.g. Africa (they deliver the product to Poland by trains). Manufacturers who have been using hydrolyzed wheat gluten for their products should probably think about switching their formulations to other materials.
Dextrose
Dextrose can be made from many types of starch, including wheat, rice, potatoes, cassava, and arrowroot. One of the cheapest and most common sources of dextrose is corn. It should be noted that Russia and Ukraine account for about 20 percent of corn exports. Given the current situation, i.e. the invasion of Ukraine and the global sanctions imposed on Russia, the result is leading to a shortage of this product not only in Europe but also worldwide. As a result, the procurement of dextrose is becoming increasingly difficult, manufacturers have to find substitutes for raw materials, and the price of the final product is rising.
Corn gluten meal
As we mentioned earlier, there is still very little corn on the market, especially in the Balkans. Additionally in the US the cool temperatures, and unexpected snow storm in Northern Plains will slow corn planting and germination. As the growing season begins, snow can delay planting crops or disrupt what has already been planted. All this comes at a time when global food prices are at record highs and supply chains are still tangled.
