Home / News / Crops news / Russia wheat ban may slash food aid to millions, says WFP

Russia wheat ban may slash food aid to millions, says WFP

08/10/2010 @ 8:43am

LONDON (Dow Jones)--Millions of the world's poorest people could go hungry because Russia's ban on wheat exports will reduce the amount of food aid delivered to developing countries, the World Food Programme warned Tuesday.

The world's largest humanitarian food agency told Dow Jones Newswires it is seeking an exemption to Russia's ban on grain exports due to fears that surging prices may cut the amount of grain it can procure elsewhere.

"Clearly we won't be able to feed as many people due to the higher prices," said Caroline Hurford, U.K. spokesman for the WFP. "We are looking for an exemption for all humanitarian aid."

The WFP, the food aid branch of the United Nations, provided food for more than 100 million people in 73 countries during 2009, including those facing humanitarian crisis and conflicts. Over a third of the 2.6 million metric tons of food the WFP purchased in 2009 was wheat, the organization said, meaning any shortage of supply could affect millions.

Around 95% of the WFP's wheat is sourced from the area around the Black Sea, which last year produced around a quarter of the world's wheat. However, severe drought has devastated the region's harvest, prompting Russia, the world's third-largest exporter, to place a ban on all grain exports from Aug. 15.

In the first seven months of 2010, 68% of the 550,000 tons of wheat purchased by the WFP came from Russian origin, with Ukraine and Kazakhstan providing the majority of the rest.

WFP's Hurford said that while the organization is hopeful that it may be exempted from the ban, it will think twice before sourcing too much of their supply from Russia in the future. "Like anybody we'll be a bit wary of being over-reliant on Russia," she added.

Prices for wheat have surged more than 50% to hit two-year highs last week as Russia's ban on grain exports prompted fears of a shortfall in supplies of cheap wheat.

-By Caroline Henshaw, Dow Jones Newswires; 4420-7842-9478; caroline.henshaw@dowjones.com

(END) Dow Jones Newswires

August 10, 2010 08:36 ET (12:36 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.

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