Grain prices break record, Italy to shut down 11% of agricultural companies

Price on grain break a ten-year record in the international market, while Italy is getting ready to shut down eleven percent of its agricultural enterprises.

Prices for soft and durum wheat, as well as corn, remain at the highest level perhaps in the last few decades, Italian farmers say.

The increase in food prices is associated with the ongoing crisis in Ukraine, because Russia and Ukraine are two major grain exporters to Europe.

Russia and Ukraine account for more than a third of the all grain exports in the world.

Canada cut grain supplies to Italy by 50 percent because of the drought. To make matters worse, Italy will have to reduce its durum wheat production due to the shortage of synthetic fertilizers imported from Russia (prices on synthetic fertilizers have already grown by 200 percent). Against the background of such conditions, about 100,000 agricultural enterprises in Italy may close.