Global food prices remain at record levels as the crop trade continues to be disrupted by the
war in Ukraine.
Russia’s invasion has reduced exports from Ukraine to a trickle, curbing supplies from one of
the world’s biggest grain and vegetable oil producers. At the same time, high fertilizer prices and
weather worries are adding to the threat for global crop supplies, including drought curbing this
year’s U.S. wheat crop.
As a result, prices for major staples including vegetable oils, grain, and meat remain at record
highs, according to a new report by the United Nation’s Food and Agriculture Organization.
The U.N. food price index soared 13% in March, its fastest pace on record, in the immediate
aftermath of Russia’s attack on Ukraine. It has now surpassed levels seen between 2008 and
2011 that contributed to a global food crisis.
Surging food prices are putting increasing pressure on governments around the world, from Sri
Lanka to Peru. The inflation rate in Turkey is at a two-decade high, buoyed by rising grocery
costs. British retailers are also warning of higher costs as supply-chain bottlenecks hold up
shipments.
Food insecurity spiked 25% last year before the war in Ukraine started, and the hunger problem
is likely to deteriorate further in 2022, according to the U.N. report.
