The Russian military operation in Ukraine portends a food crisis in Lebanon, which relies on Ukraine to import wheat amid the absence of a strategic stockpile.
Ukraine is the largest supplier of wheat in Lebanon
Lebanon imports more than 70 percent of its wheat needs from Ukraine only, while it imports the rest from Russia and other countries. Lebanon also imports iron, sunflower oil, grains and others.
Lebanon imported more than 630,000 tons of wheat from Ukraine in 2020, or 80 percent of its consumer need, up from 535,000 tons of wheat imported in 2019.
The strategic stockpile of wheat in Lebanon
Lebanon is facing a strategic stockpile crisis, as since the explosion of August 4, 2020, the port has lost rubble WheatTherefore, it was no longer possible to store wheat in it, which used to accommodate about 120,000 tons of wheat, i.e. a need for 3 months.
Today, wheat imports come to Lebanon via small ships. The ship’s capacity ranges between 5 thousand and 7 thousand tons only, with the exception of some shipments with a capacity of 15 thousand tons, which belong to more than one importer. The wheat is transported from the ships through trucks to the warehouses of the mills. directly. A recent stock is enough for about a month and a half.
On Friday, Economy Minister Amin Salam said that work is underway to secure another source of wheat, such as the United States, Canada, India and some European countries, and “we received assurances from the World Food Organization of assistance.”
He pointed out that if “wheat prices rise globally, it is possible that the Central Bank of Lebanon will tell us that it is unable to continue with the support.”
He explained that “60 percent of the wheat we consume in Lebanon comes from Ukraine, and the rest comes from Romania and Russia.”
Lebanon’s Mills are calling for a search for new wheat sources
In a related context, the Mills Association announced, in a statement, that “the war and events taking place in Ukraine, which is the main source of wheat, led to the cancellation of all wheat sales deals due to force majeure, which led to an increase in the price of a ton of wheat by between 45 and 50 dollars. It is necessary to search for new sources.
He called “all the concerned officials to work on the request from the Banque du Liban to transfer the price of the imported wheat, which was loaded onto the ships at sea, today and immediately,” noting that “exporters have a desire to transfer it to other countries to take advantage of the price difference after its rise and the increase in demand for it.” Wheat”,
I hope that “the officials will take this issue seriously and quickly, because the available stock is not enough for more than one month, knowing that its price has not been paid and must be paid so that it can be ground.”
The head of the Syndicate of Wheat Importers in Lebanon, Ahmed Hoteit, explained to “Al-Ain News” that if the war continues for a long time, it may become difficult to obtain wheat from all the countries of the Black Sea so that only America will remain before us, and the cost of this option is in terms of the price of wheat or In terms of the cost of transporting it, it will be huge and will undoubtedly be reflected in the loaf of bread in Lebanon.
He pointed out that “the wheat shipment from Ukraine needs about seven days to reach Lebanon, while from America it will take at least 25 days, noting that what is happening today increases the crisis resulting from the destruction of wheat rations and the dollar crisis, which led to the high cost of bread in Lebanon.”
It seems that the Ukrainian crisis will also affect sunflower oil as well.
The head of the Syndicate of Food Importers in Lebanon, Hani Al-Bohsali, told “Al-Ain News” that Lebanon imports 60 percent of its vegetable oil needs from Ukraine.
Bohsali pointed out that there will be a shortage of oil in the markets, especially since we are approaching the blessed month of Ramadan, when the demand for it increases.
He added: “The confusion has affected the global market, not only Lebanon, and therefore will be reflected in the availability of the material in the markets and the rise in its price as a result of the increased demand for alternatives represented, for example, soybean oil and corn oil, indicating that the problem does not lie only in importing oil also with the possibility of clearing shipments that had previously been launched.” From Ukraine as a result of the inability to complete the required administrative procedures.