War gives rise to new uncertainties

“The market is evidently reacting to the worsening war situation in Ukraine and the prospect of grain being in short supply for a long time yet.” This is the verdict of analysts covering the market for cereal commodities. Production risks in 2022 and the strong international demand are driving wheat prices to a new high, which will ultimately also have a big impact on pet food production.

Last Tuesday alone, wheat prices increased by 20 euros to 400 euros per tonne. Maize has gone up by 8 euros and the new maize crop is rising by 12 euros. The price of rapeseed is increasing by 20 euros to 990 euros.

The situation is exacerbated by fears of production losses due to the weather. In the USA in particular, the dry conditions in the Mid-West and on the southern plains are causing a critical situation with regard to American winter wheat, according to the analysts. The harvest is expected to decline by 21 points compared with last year.

Ukraine cannot currently export grain, nor is work in the fields possible to any great extent. The wheat harvest is expected to fall this year to 18.2 mio tonnes from 33 mio tonnes last year. At the same time, international demand is reported to remain high, with top importers Egypt and Algeria continuing to buy large quantities of wheat in Europe.

Collar Company, an internationally active manufacturer of pet accessories in Ukraine, is appealing to the pet sector for urgent assistance. More information on how to help the company can be found at the website https://collarglobal.com/help.

Just a year ago, Collar Company was presented with the PET worldwide Product of the Year Award. Now the firm is in a difficult situation; its production facilities and office buildings in Chernihiv have been badly damaged by missile attacks. Whether and when the company will be able to resume operations there is completely uncertain at present.  

The company has a strong sense of commitment to its 596 employees and their families. It is now trying to get up and running in Ivano-Frankivsk, around 600 km away from Chernihiv. In a letter to the PET worldwide editorial team, Collar Company reports that it has rented accommodation, storage space and office premises for this purpose. The company is asking the entire pet supplies sector for support to rebuild the business. 

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