Food Business News - May 10, 2022 - 7

EDITORIAL STAFF
EDITORIAL
Editor-in-Chief
L. Joshua Sosland
Editor
Keith Nunes
Executive Editor
Eric J. Schroeder
Managing Editor
Monica Watrous
Senior Editors, Markets
Jay S. Sjerven
Ron Sterk
Senior Editor
Jeff Gelski
Associate Editors, Markets
Matt Noltemeyer
Crystal Futrell
Digital Editor
Sam Danley
Digital Associate Editor
Sarah Straughn
Contributing Editor
Donna Berry
Markets, Senior Graphic Designer,
Purchasing Seminar Coordinator
Christina Sullivan
PUBLISHING STAFF
Publisher
Mike Gude
Associate Publishers
David DePaul
Bruce Webster
Matt O'Shea
National Account Executive
Tom Huppe
Director of Audience Development
Michael Barbee
Audience Development Analyst
Dustin Pickman
Audience Database Specialist
Hannah Carney
Audience Development Coordinator
Lauren Juliana
Director of Digital Media
Jon Hall
Digital Advertising Manager
Carrie Fluegge
Advertising Manager
Nora Wages
Advertising Coordinator
Annie Fournier
Design Services Manager
Elisabeth Spillman
Production Specialist
Marj Potts
Senior Design Consultant
Becky White
Promotions Manager
Jim White
Promotions Media Designer
Abby Chronister
Sales Coordinator
Whitney Hartman
CORPORATE
Chairman and CEO
Charles S. Sosland
President
L. Joshua Sosland
Chief Financial and
Administrative Officer
Staci Greco
Chief Operating Officer
and Executive Editor
Meyer Sosland
Chief Marketing Officer
Jim Saladin
THE ROSTER OF COUNTRIES EMPLOYING
export bans of specific commodities to protect
domestic markets is growing and will further
disrupt supply chains striving to recover from
lockdowns incurred during the worst of the
COVID-19 pandemic. If more countries embrace
these strategies, the situation may devolve from
mere supply chain disruptions into a threat to
global trade and economic growth that will push
costs higher around the world.
The most recent action occurred in
Indonesia, which banned the export of palm
oil beginning April 28 due to surging domestic
prices (see story on Page 1 of this issue). As the
world's largest producer and exporter of palm
oil, the effect of the ban was immediate. But
no less significant has been Russia's banning
of fertilizer, some grains and sugar exports in
response to sanctions imposed, because of that
country's invasion of Ukraine; China's banning
of fertilizer exports; and Turkey's halt in the
export of beef, butter, corn, goat, lamb and
vegetable oils.
In all, more than 40 countries have
implemented export bans of some sort since
the military action in Ukraine began, according
to Global Trade Alert, a foundation that
tracks global trade trends. Individually, these
actions may pose manageable challenges for
food companies, but combined they represent
a threat, particularly if more countries take
similar actions.
The World Trade Organization has revised
its 2022 global gross domestic product forecast
rate of growth down to 2.7% from 4.1%. The
WTO's global trade volume forecast also was
revised down from 4.7% in 2022 to 3%, with
much of both revisions based on the hostilities
in Ukraine, but also lockdowns in China implemented
following outbreaks of COVID-19.
Domestically, food and beverage manufacturers
as well as just about every other business
sector is facing higher costs for raw materials.
The March Producer Price Index showed an
11.2% year-over-year rise, the largest increase on
record. On a monthly basis, the PPI rose 1.4%,
outpacing economists' expectations of 1.1%.
The dramatic rise in costs also may be
seen in Food Business News' Food Ingredient
More than 40 countries
have implemented
export bans of some sort
since the military action
in Ukraine began.
Indexes. The indexes are based on ingredient
costs using standard industry formulas. The
devil's food cake index surged to 415.8 on April
29, up from 183 a year ago; the cake donut
index hit 394.3, up 95% over the previous year;
the frozen apple pie index reached 320.4 from
229.7 a year ago; and the vanilla ice cream
index rose 42% to 177.4.
The current inflationary environment
reflects a combination of recovery from the
supply chain disruptions caused by the pandemic
and the immediate effects of the war in
Ukraine. It is reaching into every aspect of food
manufacturing, but what has yet to take hold
are the acute global effects of the war.
Ngozi Okonjo-Iweala, the World Trade
Organization's director general, recently noted
history has taught that dividing the world
economy into rival blocs has neither led to
prosperity nor peace.
Those blocs may form
and harden as the conflict
in Ukraine drags on and
portends even greater
challenges as the year
progresses. FBN
Keith Nunes
knunes@sosland.com
Russia, Ukraine conflict may drive
some prices beyond historic highs
We're eager to receive your feedback:
Email editor@sosland.com or write to us at:
Food Business News, 4801 Main Street, Suite 650, Kansas City, Mo, 64112
May 10, 2022
Food Business News
7

Food Business News - May 10, 2022

Table of Contents for the Digital Edition of Food Business News - May 10, 2022

Food Business News - May 10, 2022 - Intro
Food Business News - May 10, 2022 - 1
Food Business News - May 10, 2022 - 2
Food Business News - May 10, 2022 - 3
Food Business News - May 10, 2022 - 4
Food Business News - May 10, 2022 - 5
Food Business News - May 10, 2022 - 6
Food Business News - May 10, 2022 - 7
Food Business News - May 10, 2022 - 8
Food Business News - May 10, 2022 - 9
Food Business News - May 10, 2022 - 10
Food Business News - May 10, 2022 - 11
Food Business News - May 10, 2022 - 12
Food Business News - May 10, 2022 - 13
Food Business News - May 10, 2022 - 14
Food Business News - May 10, 2022 - 15
Food Business News - May 10, 2022 - 16
Food Business News - May 10, 2022 - 17
Food Business News - May 10, 2022 - 18
Food Business News - May 10, 2022 - 19
Food Business News - May 10, 2022 - 20
Food Business News - May 10, 2022 - 21
Food Business News - May 10, 2022 - 22
Food Business News - May 10, 2022 - 23
Food Business News - May 10, 2022 - 24
Food Business News - May 10, 2022 - 25
Food Business News - May 10, 2022 - 26
Food Business News - May 10, 2022 - 27
Food Business News - May 10, 2022 - 28
Food Business News - May 10, 2022 - 29
Food Business News - May 10, 2022 - 30
Food Business News - May 10, 2022 - 31
Food Business News - May 10, 2022 - 32
Food Business News - May 10, 2022 - 33
Food Business News - May 10, 2022 - 34
Food Business News - May 10, 2022 - 35
Food Business News - May 10, 2022 - 36
Food Business News - May 10, 2022 - 37
Food Business News - May 10, 2022 - 38
Food Business News - May 10, 2022 - 39
Food Business News - May 10, 2022 - 40
Food Business News - May 10, 2022 - 41
Food Business News - May 10, 2022 - 42
Food Business News - May 10, 2022 - 43
Food Business News - May 10, 2022 - 44
Food Business News - May 10, 2022 - 45
Food Business News - May 10, 2022 - 46
Food Business News - May 10, 2022 - 47
Food Business News - May 10, 2022 - 48
Food Business News - May 10, 2022 - 49
Food Business News - May 10, 2022 - 50
Food Business News - May 10, 2022 - 51
Food Business News - May 10, 2022 - 52
Food Business News - May 10, 2022 - 53
Food Business News - May 10, 2022 - 54
Food Business News - May 10, 2022 - 55
Food Business News - May 10, 2022 - 56
Food Business News - May 10, 2022 - 57
Food Business News - May 10, 2022 - 58
Food Business News - May 10, 2022 - 59
Food Business News - May 10, 2022 - 60
Food Business News - May 10, 2022 - 61
Food Business News - May 10, 2022 - 62
Food Business News - May 10, 2022 - 63
Food Business News - May 10, 2022 - 64
Food Business News - May 10, 2022 - 65
Food Business News - May 10, 2022 - 66
Food Business News - May 10, 2022 - 67
Food Business News - May 10, 2022 - 68
Food Business News - May 10, 2022 - 69
Food Business News - May 10, 2022 - 70
Food Business News - May 10, 2022 - 71
Food Business News - May 10, 2022 - 72
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