Vito Martielli: In terms of commodities, the biggest impact in my view is on wheat. We need to keep in mind that Ukraine and Russia together, before the start of the war, were responsible for 30 percent of global wheat trade, 30 percent of global barley trade, 20 percent of global corn trade, and 80 percent of global sunflower oil trade. In terms of absolute volumes, wheat is the biggest one − these two countries are responsible for 57 million tonnes of wheat traded globally. On the demand side, the biggest buyers of these grains are in the Middle East and North Africa. In the last three years, on average, Egypt has been the largest importer of wheat globally, followed by China and Turkey. There are also a number of developing markets in sub-Saharan Africa that are becoming more important buyers of wheat and others that are close by, for example in Southeast Asia. There are also developed markets that are impacted. The European Union is the largest buyer of corn from Ukraine. So, there is also quite a significant impact being felt there too.
What can be done to help mitigate these grain supply shortages?
Mike Häfeli: Our aim, first and foremost, is to support all our customers that are affected by such events. For example, we have customers in Ukraine that are still operating, and we are doing everything we can to support them. But that is not all. A more local, less import-dependent grain supply chain needs to be considered. For example, we are seeing our customers in Africa making improvements in the way they do agriculture. These are entrepreneurs who want to support local farmers in growing more grains. That includes not only the grains that they used to import, but also more local grains such as millet and sorghum. Their aim is to provide local grains from Africa for Africa. This makes them less dependent on imports and, therefore, on events in exporting countries. Equally importantly, these entrepreneurs are also supporting local businesses and local farmers, creating jobs, and enabling local products to be used locally.
There are different ways in which we, at Bühler, can help. One key factor is our local presence. This is a big benefit. It means we can support local entrepreneurs in turning their dreams into reality. We can provide technical guidance and solutions to reduce waste or improve yields. At our African Milling School in Nairobi, Kenya, we can train and upskill our customers’ employees to become more proficient in processing so that they can support local grain production.