00:00 Global prices for wheat have soared since the collapse of a deal about a fortnight ago
00:06 that would have seen safe passage for wheat from Ukraine to European markets.
00:11 Russia and Ukraine together produce about a third of the world's wheat.
00:16 The fact that it can't get out of that region easily now adds a lot of pressure on supplies
00:21 for the world and thus the price has gone up.
00:24 Australia produces in a given year between 6 and 10 percent of the world's wheat supply.
00:29 So it's good news for Australian farmers who'll get more money for their crop.
00:34 You probably won't see a huge jump in the price of say bread and other items made from
00:39 wheat because they're only a very small part of the cost of those products.
00:42 But it does add to overall inflation in the price of food, something that's been a key
00:47 driver of the consumer price index of inflation for the past year.
00:52 These things aren't going to sort out quickly.
00:54 Getting that wheat out of Ukraine isn't easy.
00:57 The two options that there are, via the sea or via the Danube River, have been bombed
01:02 and rebuilding those facilities is going to take a lot of time.
01:06 So we're going to see more pressure on the wheat price, higher prices for Australian
01:10 growers like the farm behind me here in Minyip in Victoria's Wimmera region.
01:14 [BLANK_AUDIO]
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