Russia and Ukraine account for 30 percent of the world’s exported wheat. That’s bad news because, in case you’ve been living under a rock, there’s a war raging.
As of right now one third of the world’s supply comes from an area where one country is under siege and the other is under massive sanctions. Wheat is still being exported from Russia but sanctions are expected to put a squeeze on supply in a big way.
What’s going to happen to us here in America? Will we be impacted by the global wheat shortage?
Here’s Five Fast Facts:
- 🌎 Worldwide problem, local pain - This isn’t a problem unique to any one state or country. The war has caused wheat prices to soar, reaching a 14-year high.
- 🩹 This will hurt a little - Let me rip the band-aid off quick; the cost for beer is going to go up. Bread, too. Really, anything made with wheat is going to see a price increase. Probably between 3-4% by the end of the year.
- 💲 Some people will win - Farmers could stand to see a profit spike due to the increase in demand.The problem is the supply! If American farmers simply don’t have the extra wheat they can’t just go back in time and plant more for this season. They’re not Michael J. Fox, afterall.
- 🚨 Back to those higher prices - What can you do to prevent taking a hit at the register? Lots of things. Cut coupons, buy certain items in bulk, eat at home instead of going out, and make sure you’re signed up to receive the Paycheckology newsletter, so you get tips like these.
- ❓ When will the madness end? When the war ends, when inflation comes down, or maybe next season when more farmers decide to grow more wheat. Until then, buckle up - and maybe switch to a cheaper brand of beer.
🔥Bottom line: Beer is good and war is bad. Food prices are high right now because of both war and inflation, but there are things you can do to soften the blow to your bottom line.
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