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Culture War Roundup for the week of January 16, 2023

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Ukraine has little value from an economic standpoint. When you look at the amount that Ukraine produces, you'll see it's very little. Wheat for example: 20 million tons at $300/ton or just $6 billion/year. That's about 3% of the world supply or about 1% of the yearly revenue of Wal-Mart. If Ukraine production in all categories went to zero overnight, the market would barely even notice.

...what?

Ukraine produces about 33 million tons of wheat, which is a bit over 4% of global production, but it exports about 19million tons, which is 9% of global exports. Taking nearly 10% of wheat exports off the global market is not 'market would barely even notice,' it's 'arab spring food riots,' because most of the most volatile countries in the world are not food self-sufficient.

Similar deal with other crops. Ukraine only produces about 3.5% of global corn, but what it does produce is 12% of the global export market. You're looking at even larger fractions of other items- 17% barley, 20% rapeseed, and around 50% of global export share of sunflower meal and oil. These are non-trivial shared of the global food market.

https://www.fas.usda.gov/sites/default/files/2022-04/Ukraine-Factsheet-April2022.pdf

This gets even worse when one considers the Pakistan flooding, which has wiped off a considerable share of the global export rice market off the market for this year.