Ukraine war disruptions send food prices to their highest ever
World food prices hit an all-time high in March following the war between agricultural powerhouses Russia and Ukraine, a United Nations agency said on Friday, adding to concerns about the risk of hunger around the world.
The disruption in export flows resulting from the February 24 invasion and international sanctions against Russia has spurred fears of a global hunger crisis, especially across the Middle East and Africa, where the knock-on effects are already playing out.
Russia and Ukraine, whose vast grain-growing regions are among the world’s main breadbaskets, account for a huge share of the globe’s exports in several major commodities, including wheat, vegetable oil and corn, their prices reached their highest levels ever last month.
Ukrainian ports have been blocked by a Russian blockade and there is concern about this year’s harvest as the war rages on during the sowing season.
The UN Food and Agriculture Organization (FAO) said its Food Price Index, which tracks monthly changes in international prices for a basket of commodities, averaged 159.3 points last month, up 12.6 percent from February. As it is, the February index was the highest level since its inception in 1990.
FAO said the war in Ukraine was largely responsible for the 17.1 percent rise in the price of grains, including wheat and others like oats, barley and corn. Together, Russia and Ukraine account for approximately 30 percent and 20 percent of global wheat and corn exports, respectively.
While predictable given February’s steep rise, “This is really remarkable,” said Josef Schmidhuber, deputy director of FAO’s markets and trade division. “Clearly, these very high prices for food require urgent action.”
The biggest price increases were for vegetable oils: that price index rose 23.2 percent, driven by higher quotations for sunflower seed oil that is used for cooking. Ukraine is the world’s leading exporter of sunflower oil, and Russia is second.
Prices of sugar and dairy products “also rose significantly” the FAO said.
“There is, of course, a massive supply disruption, and that massive supply disruption from the Black Sea region has fueled prices for vegetable oil,” Schmidhuber told reporters in Geneva.
He said he could not calculate how much the war was to blame for the record food prices, noting that poor weather conditions in the United States and China also were blamed for crop concerns. But he said that “logistical factors” were playing a big role.
“Essentially, there are no exports through the Black Sea, and exports through the Baltics is practically also coming to an end,” he said.