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Home Opinion & Editorial Editorial

Global food prices

Editorial by Editorial
March 15, 2022

The UN has warned the world is facing a potential food crisis with soaring prices and millions in danger of severe hunger. Food prices were already high due to the COVID-19 pandemic and now the strain of the Russia-Ukraine war could tip the global food system into disaster.

The UN Food and Agricultural Organization has warned that countries are exacerbating the situation and war can easily lead towards a greater food crisis. Wheat prices hit a record high recently as Ukraine and Russia account for nearly 30% of supplies and at least 50 countries depend on these two countries.

Overall food prices have been rising since second half of 2020 and reached an all-time high in February this year. Wheat, barley prices rose a third while rapeseed and sunflower oil increased by more than 60% during 2021. The price of urea has tripled in the past year on rising energy prices.

Developing countries in northern Africa and Asia are bearing the biggest brunt of rising food prices. Many of these countries are already struggling financially amid the pandemic and now facing even greater challenges if the conflict continues. Food experts have already warned that the number of people suffering from chronic hunger can grow significantly.

The war in Ukraine presents multiple threats to food security that will be felt across the world. Both countries are major food exporters and the war directly threatens supplies of staples such as wheat, maize and sunflower. The war is sending energy prices higher which will further impact agricultural production costs. Such sudden spikes could lead to riots and political upheavals.

Amid the instability, countries need to keep food systems open and share information on stocks, harvests and food availability. More importantly, countries that are in a position to produce more should do so. In the short run, we need to ensure availability to fill the gap and eventually diversify suppliers. The impact on food prices will be felt for quite some time even if the conflict is resolved quickly but countries need to prepare for problems next year.

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