Why Russia's pullout from Ukraine grain deal will impact prices in Canada

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Why Russia's pullout from Ukraine grain deal will impact prices in Canada
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Russia's recent pullout from a deal that allowed Ukraine to export grain will likely impact prices in Canada.

"Both Russia and Ukraine are very large grain producers," Opher Baron, a professor of operations management at the University of Toronto's Rotman School of Management, told CTVNews.ca Tuesday. "Any long-lasting shortage of grains export from either would change the price of grain, as it is a global commodity."that it was immediately pulling out of a deal that allowed ships to export grain from Ukrainian ports.

"It affects everything because it's about 15 per cent of all calories consumed on Earth," Dalhousie University food security expert Sylvain Charlebois told CTVNews.ca. "You're basically seeing a global breadbasket being impacted by geopolitics and a huge conflict." "I think it's really an unfortunate turn that the pact has ended," Charlebois, who is a professor and the senior director of Dalhousie's Agri-Food Analytics Lab, said. "It doesn't bode well for the future. It's going to be extremely difficult for Ukraine to mobilize anything, which will discourage farmers to grow anything, which will eventually impact wheat prices around the world.

Higher domestic production in 2022 over 2021, and the re-opening of Ukrainian ports for wheat exports in late July, saw prices dip in October

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