Global trend: food prices jumped 34% within a year

World food prices climbed to a new high and rose at the highest rate in 14 years against the backdrop of the war in Ukraine which led to a reduction in the supply of grains and oils from plants.

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According to reports, the food price index for March published by the Food and Agriculture Organization of the United Nations (FAO) rose at an annual rate of 34%, and this is the third consecutive month that the rate of increase breaks a record. Of 17.1% and vegetable oils – at 23.2%, when in both cases the goods reached record prices.

Ukraine and Russia are major exporters of cereals and sunflower oil, accounting for about 30% of world wheat trade. The Russian invasion of Ukraine led to a sudden halt in supply lines from these countries. Although Russia continues to export wheat, the international sanctions imposed on it make it difficult to transfer payments and cause great uncertainty around shipments.

The rise in food prices comes after global food inflation has already started to rise due to a weak crop last year due to problematic weather conditions and a sharp jump in demand after the removal of corona restrictions.

The sharp rise in food prices is likely to hurt the poorer countries, many of which are still struggling to recover from the effects of the corona. Many countries in the Middle East and North Africa depend on grain and oil imports from Ukraine and Russia.

According to FAO data, close to 50 countries around the world depend on Russia and Ukraine to fill at least 30% of their wheat import needs. “The ongoing war in Ukraine underscores concerns about the impact on food security around the world,” said Beth Bechdol, secretary general of the organization.

Following the war and the damage to the supply chains that preceded it, there was a worldwide pursuit of many goods, and not just food, with the recycled countries counting Canada, Brazil, South Africa and Argentina.

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