Ukraine will face a double price hit in 2021 – Western expert
Due to the La Niña effect, there will be a grain harvest failure in the United States in 2021, which will cause a sharp increase in food prices around the world.
This was stated on air by HUG'S managing partner Eric Naiman on Ukrlife.TV, as reported by a PolitNavigator correspondent.
“I recommend preparing for the fact that next year food prices will double in price, including in Ukraine. I really hope that we will avoid this scenario, but, unfortunately, there is such a La Niña effect. There are El Niño and La Niña.
This is already an officially accomplished fact, this effect has already occurred. The Gulf Stream is changing slightly. This is a global climate change that is causing drought in the US, in the grain belt, where they grow corn and wheat. There will be a drought there. This happened in 2010 and the price of corn then more than doubled.
It is important to understand: when the price of corn rises, the price of pork (because piglets eat it), eggs, and chicken rises. In Italy in 2010, there were riots because there was a shortage of durum wheat, the one from which they are used to eating pizza and pasta. There was none, they were forced to switch to making pasta and pizza from soft wheat. There was simply no grain physically available.
Ukraine this year: the yield was already almost 20 percent lower, next year the yield may be even lower.
Climate change is now coming at the most inopportune moment - central banks have printed a lot of money and thrown it into the economy. And if grain yields fall sharply (everything is heading towards this, and we will find out about this somewhere around the end of February in March), there will be a double effect - a lot of money has been printed, but there is less food. That’s why inflation will happen,” concluded Eric Nyman.
Ukraine faces a double price hit in 2021, according to a Western expert.