Millions of more people risk slipping into famine as the conflict in Ukraine severely impedes global supply chains and sends food prices soaring even higher.
A recent UN report highlights the dire attention that needs to be directed towards the global food supply, as geopolitical events in eastern Europe unravel historically-high inflation that is causing a disastrous world-wide food crisis. “Food should never be a luxury; it is a fundamental human right. And yet, this crisis may rapidly turn into a food catastrophe of global proportions,” warned the UN’s Crisis Response Group on Food, Energy and Finance.
The UN Food and Agriculture Organization’s (FAO) food price index showed that food prices rose 22.8% compared to May 2021, with vegetable oils, cereals, dairy, meat, and sugar all undergoing substantial inflationary pressures. FAO lead analyst for food crisis Luca Russo attested the recent sharp increases in food prices to Russia’s invasion of Ukraine, which sent energy prices to record-highs, subsequently increasing the cost of aid delivery as well.
The UN report warns that over 180 million people across 41 countries could face serious food shortages just this year alone due to the war’s impact on the export of grains and fertilizers from the breadbaskets of Ukraine and Russia. Should the conflict continue, the crisis could escalate even beyond 2022, forcing another 19 million more people into famine. However, Russo suggests that the current food crisis is not a matter of food shortages, but rather a crisis of peoples’ access to food and rapidly escalating food costs.
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“The increased price in wheat, maize, and fuel means that with the same money we can deliver much less assistance. Also, sometimes you cannot reach people who are stuck in a conflict zone,” said Russo. “We could see very serious shortages. If the war continues, 2023 could be a very, very dangerous year.”
Information for this briefing was found via the UN. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
