Aquaculture supply chain concerns after Russia invades Ukraine
As a major exporter of grains, Russia's invasion of Ukraine is expected to have an impact on animal feed prices.
Ukraine's commercial shipping has been suspended at its ports after Russian forces invaded the country, stoking fear of supply disruption from leading grain and oilseeds exporters, Reuters reported. Grain operators, such as Bunge and ADM, and shipping group Maersk shuttered its offices in Ukraine.
Ukraine is a major exporter of corn, much of it destined for China and the European Union. It also competes with Russia to supply wheat to major buyers such as Egypt and Turkey. Disruption in grain supplies is expected in the countries where Ukraine exports and the first impact is expected to be in the animal feed market with increasing prices.
Western countries' sanctions to Russia are also expected to have consequences in the grain supply and the aquaculture industry, especially the salmon industry. Salmon farming has developed rapidly in Russia in recent years and the country planned to build new hatcheries and farms. Russian sanctions would have consequences for smolt, technology and feed suppliers.
The industry is still struggling to get a clear picture of the situation and what impact it would have in the aquaculture industry.