Food prices have risen to record levels around the world, fueling poverty, hunger and political instability. While there are no quick fixes to the crisis, better-off countries should at least strive not to make it worse.
According to the World Food Program, some 193 million people worldwide suffer acute food insecurity, due in part to pressures on global food markets that have been building for some time now. Soaring energy prices in 2021 drove up the cost of fertilizers and fuels needed by farmers. Dry weather ruined crops in big food-producing countries such as Brazil, the United States and Canada. Shipping delays caused by the pandemic have disrupted trade.
Russia’s invasion of Ukraine has accelerated the crisis. Before the war, the two countries accounted for nearly 30% of globally traded wheat. Ukraine provided roughly half the world’s exports of sunflower oil and Russia one-eighth of its fertilizer exports. Sanctions on Russia have further inflated energy prices, making fertilizers even costlier.