If Food Rationing Can Happen in Germany, It Can Happen Here

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Title : If Food Rationing Can Happen in Germany, It Can Happen Here
Link : If Food Rationing Can Happen in Germany, It Can Happen Here

While American supermarkets have been experiencing shortages and prices have been rising, so far, we haven't truly seen food rationing. We've been rationing infant formula, but that's about it.

European countries, however, cannot say the same. German supermarkets Aldi, Lidl, and Rewe have been limiting sales of items such as bread, pasta, and cooking oil to "normal household quantities" to prevent hoarding.

There are very real problems at every step of the chain between the fields and the homes of consumers, no question. Are they bad enough yet that it warrants rationing? Let's think about this a little bit.

Germany is actually a net exporter of wheat.

However, wheat is an internationally traded commodity, which means that the shortage caused by the war between Russia and Ukraine affects prices worldwide.

Germans have wheat, but it's increasingly expensive.

The same goes for vegetable oils. There's more to bread and pasta than just wheat, and practically every packaged food at the supermarket contains vegetable oil. Germany produces some oil, but they are ranked 11th in production worldwide. Like wheat, vegetable oil is an internationally traded commodity, and Russia and Ukraine are producers 8 and 9 globally. The ongoing war in Ukraine has disrupted much of their agriculture. The Ukrainians simply won't be able to plant, harvest, and thereby export much this year.

The Russians, meanwhile, banned sunflower seed exports and placed a quota on the amount of sunflower oil to be exported this year. What the Russians have produced is mostly going to India, not Europe.

You might be thinking sunflower oil is just one kind of oil, so who cares? What about all the other stuff out there? READ MORE