Markets
3 Reasons for the Fertilizer and Food Shortage
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3 Reasons for the Fertilizer and Food Shortage
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Bad weather, the Russian invasion of Ukraine, and a shortage of fertilizer have led to fears of a global food crisis.
This infographic will help you understand the problem by highlighting three key factors behind the mounting food crisis.
#1: The Fertilizer Shortage
Since the beginning of the Russian invasion of Ukraine in February 2022, the war has disrupted shipments of fertilizer, an essential source of nutrients for crops.
Russia is the world’s top exporter of nitrogen fertilizer and ranks second in phosphorus and potassium fertilizer exports. Belarus, a Russian ally also contending with Western sanctions, is another major fertilizer producer. In addition, both countries collectively account for over 40% of global exports of the crop nutrient potash.
Here are the top 20 fertilizer exporters globally:
| Rank | Country | Exports Value (Billions in USD) |
|---|---|---|
| #1 | 🇷🇺 Russia | $12.5 |
| #2 | 🇨🇳 China | $10.9 |
| #3 | 🇨🇦 Canada | $6.6 |
| #4 | 🇲🇦 Morocco | $5.7 |
| #5 | 🇺🇸 United States | $4.1 |
| #6 | 🇸🇦 Saudi Arabia | $3.6 |
| #7 | 🇳🇱 Netherlands | $2.9 |
| #8 | 🇧🇪 Belgium | $2.6 |
| #9 | 🇴🇲 Oman | $2.6 |
| #10 | 🇶🇦 Qatar | $2.2 |
| #11 | 🇩🇪 Germany | $1.5 |
| #12 | 🇮🇱I srael | $1.5 |
| #13 | 🇪🇬 Egypt | $1.5 |
| #14 | 🇱🇹 Lithuania | $1.4 |
| #15 | 🇩🇿 Algeria | $1.4 |
| #16 | 🇪🇸 Spain | $1.3 |
| #17 | 🇯🇴 Jordan | $1.3 |
| #18 | 🇵🇱 Poland | $1.2 |
| #19 | 🇲🇾 Malaysia | $1.0 |
| #20 | 🇳🇬 Nigeria | $1.0 |
The main destination of fertilizer exports from Russia are large economies like India, Brazil, China, and the United States.
However, many developing countries—including Mongolia, Honduras, Cameroon, Ghana, Senegal, and Guatemala—rely on Russia for at least one-fifth of their fertilizer imports.
Furthermore, the war intensified trends that were already disrupting supply, such as increased hoarding by major producing nations like China and sharp jumps in the price of natural gas, a key feedstock for fertilizer production.
#2: Global Grain Exports
The blockade of Ukrainian ports by Russia’s Black Sea fleet, along with Western sanctions against Russia, has worsened global supply chain bottlenecks, causing inflation in food and energy prices around the world.
This is largely because Russia and Ukraine together account for nearly one-third of the global wheat supply. Wheat is one of the most-used crops in the world annually, used to make a variety of food products like bread and pasta. Additionally, Ukraine is also a major exporter of corn, barley, sunflower oil, and rapeseed oil.
| Producer | Grain Exports in Million Tons (MT) |
|---|---|
| 🇺🇸 United States | 93MT |
| 🇷🇺 Russia & 🇺🇦 Ukraine | 87MT |
| 🇦🇷 Argentina | 56MT |
| 🇪🇺 EU | 50MT |
| 🇧🇷 Brazil | 44MT |
| Other | 87MT |
As a result of the blockade, Ukraine’s exports of cereals and oilseed dropped from six million tonnes to two million tonnes per month. After two months of negotiations, the two countries signed a deal to reopen Ukrainian Black Sea ports for grain exports, raising hopes that the international food crisis can be eased.
#3: Recent Food Shortages
Besides the war in Ukraine, factors including the COVID-19 pandemic and climate change resulted in nearly one billion people going hungry last year, according to United Nations.
France’s wine industry saw its smallest harvest since 1957 in 2021, with an estimated loss of $2 billion in sales due to increasingly higher temperatures and extreme weather conditions.
Heat, drought, and floods also decimated crops in Latin America, North America, and India in recent months. Between April 2020 and December 2021, coffee prices increased 70% after droughts and frost destroyed crops in Brazil.
In the face of multiple crises, the World Bank recently announced financial support of up to $30 billion to existing and new projects in areas such as agriculture, nutrition, social protection, water, and irrigation.
Agriculture
Which Countries Produce the Most Wheat?
Global wheat production is concentrated in just a handful of countries. Here’s a look at the top wheat-producing countries worldwide.
Creator Program
Visualizing Global Wheat Production by Country (2000-2020)
Wheat is a dietary staple for millions of people around the world.
After rice and corn (maize), wheat is the third most-produced cereal worldwide, and the second-most-produced for human consumption. And considering wheat’s importance in the global food system, any impact on major producers such as droughts, wars, or other events, can impact the entire world.
Which countries are the largest producers of wheat? This graphic by Kashish Rastogi visualizes the breakdown of 20 years of global wheat production by country.
Top 10 Wheat Producing Countries
While more than 80 different countries produce wheat around the world, the majority of global wheat production comes from just a handful of countries, according to data from The Food and Agriculture Organization of the United Nations (FAO).
Here’s a look at the top 10 wheat-producing countries worldwide, based on total yield in tonnes from 2000-2020:
| Rank | Country | Continent | Total yield (tonnes, 2000-2020) | % of total (2000-2020) |
|---|---|---|---|---|
| #1 | 🇨🇳 China | Asia & Oceania | 2.4 B | 17.0% |
| #2 | 🇮🇳 India | Asia & Oceania | 1.8 B | 12.5% |
| #3 | 🇷🇺 Russia | Asia & Oceania | 1.2 B | 8.4% |
| #4 | 🇺🇸 U.S. | Americas | 1.2 B | 8.4% |
| #5 | 🇫🇷 France | Europe | 767 M | 5.4% |
| #6 | 🇨🇦 Canada | Americas | 571 M | 4.0% |
| #7 | 🇩🇪 Germany | Europe | 491 M | 3.5% |
| #8 | 🇵🇰 Pakistan | Asia & Oceania | 482 M | 3.4% |
| #9 | 🇦🇺 Australia | Asia & Oceania | 456 M | 3.2% |
| #10 | 🇺🇦 Ukraine | Europe | 433 M | 3.1% |
China, the world’s largest wheat producer, has yielded more than 2.4 billion tonnes of wheat over the last two decades, making up roughly 17% of total production from 2000-2020.
A majority of China’s wheat is used domestically to help meet the country’s rising food demand. China is the world’s largest consumer of wheat—in 2020/2021, the country accounted for approximately 19% of global wheat consumption.
The second-largest wheat-producing country is India. Over the last two decades, India has produced 12.5% of the world’s wheat. Like China, India keeps most of its wheat domestic because of significant food demand across the country.
Russia, the world’s third-largest wheat producer, is also the largest global exporter of wheat. The country exported more than $7.3 billion worth of wheat in 2021, accounting for approximately 13.1% of total wheat exports that year.
Russia-Ukraine Impact on Global Wheat Market
Because Russia and Ukraine are both significant global wheat producers, the ongoing conflict between the two countries has caused massive disruptions to the global wheat market.
The conflict has had an impact on adjacent industries as well. For instance, Russia is one of the world’s major fertilizer suppliers, and the conflict has led to a global fertilizer shortage which could lead to food shortages worldwide.
Markets
Visualizing Gender Diversity in Corporate America
The gender gap in corporate America is still prevalent, especially in leadership roles. In 2021, only 8.2% of Fortune 500 CEOs were female.
There’s been a massive push to increase diversity and inclusion in the workplace.
However, it appears corporate America still has a ways to go, particularly when it comes to diverse representation in corporate leadership roles. In 2021, only 8.2% of Fortune 500 CEOs were female. Of those females, 85% of them were white.
This graphic by Zainab Ayodimeji highlights the current state of diversity in corporate America, reminding us that there are still significant gender and racial gaps.
Five Decades of Fortune 500 CEOs
Since 1955, Fortune Magazine has released its annual Fortune 500 list that ranks the 500 largest U.S. companies, ranked by total revenue earned each fiscal year.
For the first 17 years of its publication, there were no female CEOs on the Fortune 500. Then in 1972, Katharine Graham became CEO of the Washington Post, making her the first-ever female CEO of a Fortune 500 company.
Following Graham, a few other women joined the ranks, such as Marion Sandler, co-CEO of Golden West Financial Corporation, and Linda Wachner, CEO of Warnaco Group. But apart from those few outliers, Fortune 500 CEOs remained almost exclusively male for the next few decades.
At the turn of the millennium, things started to change. Women-led companies started to appear more frequently on the Fortune 500. Here’s a breakdown that shows the number of women CEOs on the list, from 1999 to 2021:
| Year | Fortune 500 # of Women CEOs | % of Total |
|---|---|---|
| 1999 | 2 | 0.4% |
| 2000 | 2 | 0.4% |
| 2001 | 3 | 0.6% |
| 2002 | 7 | 1.4% |
| 2003 | 7 | 1.4% |
| 2004 | 8 | 1.6% |
| 2005 | 9 | 1.8% |
| 2006 | 10 | 2.0% |
| 2007 | 13 | 2.6% |
| 2008 | 12 | 2.4% |
| 2009 | 15 | 3.0% |
| 2010 | 15 | 3.0% |
| 2011 | 12 | 2.4% |
| 2012 | 18 | 3.6% |
| 2013 | 20 | 4.0% |
| 2014 | 24 | 4.8% |
| 2015 | 24 | 4.8% |
| 2016 | 21 | 4.2% |
| 2017 | 32 | 6.4% |
| 2018 | 24 | 4.8% |
| 2019 | 33 | 6.6% |
| 2020 | 39 | 7.8% |
| 2021 | 41 | 8.2% |
Slowly, women of color started to appear on the list as well. In 1999, Andrea Jung, the CEO of Avon, became the first East Asian female CEO in the Fortune 500. And in 2009, Xerox CEO Ursula Burns was the first Black woman to become CEO of a Fortune 500 company.
By 2021, 41 of the Fortune 500 companies were led by women—8.2% of the overall list.
While this increasing total is a clear trend, it’s important to note that women make up nearly 50% of the global population, meaning genders are still not equally represented in corporate leadership.
The Financial Benefits of Diverse Workplaces
Along with the number of societal and cultural benefits that come with a diverse workplace, research indicates that diversity can also be financially beneficial to corporations, and enhance a company’s bottom line.
A study by the Council of Foreign Relations found that gender equality in the workforce could add up to $28 trillion in global GDP.
According to the Council of Foreign Relations, a number of policy changes are needed to help close the gender gap in the workforce, such as legislation to promote women’s access to capital and financial services, or tax credits for childcare support.
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