Marcos Fava Neves: Conflict in Ukraine should increase food prices

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The crisis between Ukraine and Russia may reflect in Brazil. In agribusiness, the price of grains, which has already been increasing, could reach even higher values ​​if there is an invasion of Ukrainian territory. THE CNN expert in agribusiness, Marcos Fava Neves, analyzed the situation.

According to the expert, these events are very worrying. “There is a power game between these countries, but there are three major factors of concern or consequences with probable stress in this region,” he said.

According to Neves, the first is linked to the increase in uncertainties on the planet. The pandemic, which is still present in the world, will postpone the return of investments, will affect the stock market and other factors that are not good for the economy and for the growth of the planet.

The major crisis in energy supply is also a concern. Oil is at a high price and natural gas leaves Russia, passes through Ukraine and is distributed to Europe.

The conflict will raise the price of these and other energy sources, which will increase the cost of production and have a negative impact on society.

Both Ukraine and Russia are becoming important food suppliers. A problem in this region will also affect the supply of food commodities. There has already been an increase in the price of wheat and there may be an increase in corn and soybeans.

“It’s all negative, it will increase inflation on the planet, the cost of production and the price of grains, further complicating the issue of feed, egg production, milk and meat”, he concluded.

See more in the video above.

Reference: CNN Brasil

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