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The Russia-Ukraine war could raise global food prices by 20%

The Russia-Ukraine war could raise global food prices by 20%

By م.زهير الشاعر

Published: March 12, 2022

The Food and Agriculture Organization of the United Nations (FAO) announced today, Friday, that global food and feed prices may increase by between eight and 20% due to the ongoing conflict in Ukraine, which will lead to a surge in the number of people suffering from malnutrition worldwide.

The FAO stated that it is unclear whether Ukraine will be able to harvest crops if the war continues, alongside uncertainty surrounding Russian exports in the coming year.

The organization explained that the massive mass displacement of people from Ukraine has led to a decrease in agricultural labor, and access to farmland will be difficult amid the Russian war.

It pointed out that even if farmers can reach and harvest the wheat, the problem will remain, as Ukraine's Black Sea ports are closed, and its government banned the export of wheat, oats, millet, buckwheat, and some other food products this week to prevent a crisis in the country and stabilize the local market.

The FAO said that Russia is the world's largest wheat exporter while Ukraine ranks fifth. Together, they provide 19% of global barley supplies, 14% of wheat supplies, and 4% of corn, which constitutes more than one-third of global grain exports.

Russia is also among the leading countries in fertilizer exports worldwide.

The FAO Director-General, Qu Dongyu, said in a statement, "Potential disruption in agricultural activities in these two major commodity-exporting countries could seriously increase global food insecurity."

The FAO Food Price Index recorded a record high in February, and it is almost certain to continue rising further in the coming months as the echoes of the conflict’s repercussions reverberate around the world.

The UN organization warned that the poorest countries in North Africa, Asia, and the Middle East, which heavily depend on wheat imports, face a significant risk of food insecurity due to the Russian war in Ukraine, as the conflict drives already high food prices to increase across most parts of the world.

Qu Dongyu explained that the United States, Argentina, and other wheat-producing countries are likely to limit exports as governments seek to ensure the availability of domestic supplies.

In addition to these pressures, countries that rely on wheat from Russia and Ukraine are likely to increase import levels. It is worth noting that Egypt, Turkey, Bangladesh, and Iran purchase 60% of their wheat needs from Russia and Ukraine. Lebanon, Tunisia, Yemen, Libya, and Pakistan also heavily depend on wheat exports from these two countries.

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