World food prices have reached record highs due to the impact of the conflict in Ukraine on the markets for essential grains and vegetable oil. testimony United Nations Food and Agriculture Organization (FAO) Food Price Index.
The index appeared in 1990 and shows the change in world prices for the most popular food products.
Thus, the average value of the index in March was 159.3 points. This is 12.6% higher than the February level, already the highest since the index was created, and 33.6% higher than in March last year.
This trend is driven by record price increases for grains, vegetable oils and meat, as well as significant increases in sugar and dairy prices.
Thus, the grain price index increased by 17.1% in March compared to February due to the increase in wheat and all feed grain prices due to the conflict in Ukraine. Corn prices rose 19.1% to a record high, and barley and sorghum prices also rose.
“Military activities in the Black Sea region have caused a series of shocks in the main markets for grains and vegetable oils. In the last three years, the Russian Federation and Ukraine accounted for approximately 30% of world wheat exports and 20% of world corn exports. In the statement made by FAO, it was stated that world wheat prices increased by 19.7% during the month.
The price index for vegetable oils increased by 23.2% compared to February, amid rising prices of sunflower oil, of which Ukraine is the world’s leading exporter. The increase in price also affected palm, soybean and rapeseed oil. The Sugar Price Index was 20% higher than in March 2021, up 6.7% from February due to rising oil prices and rising oil prices. course Brazilian real.
The average value of the meat price index also increased by 4.8% in March, reaching a historical maximum. The average price index of dairy products increased by 2.6%.
The upward trend in food prices started in 2020 due to the pandemic and continued for almost the entire 2021 with a short break in the summer. However, the current sharp growth is observed since February in connection with the events around Ukraine.
What happens to prices in Russia?
According to Rosstat, consumer prices since the beginning of the year grew up at 9.99%.
According to Rosstat, in the period from March 26 to April 1, the most significant increase in prices for chocolate in the food category was 2.8%, margarine – 2.6%, biscuits – 2.4%, chicken meat – 2.2% and black tea — 1.9%.
The average price of sugar in Russia rose 5.1%, polished rice – 3.1% and salt – 2.5%.
Vegetable prices increased by an average of 1.4 percent. Onion prices increased by 14.2%, cabbage prices by 13.2%, beets by 11.3%, carrots by 8.5% and potatoes by 4.8%. At the same time, cucumber prices decreased by 7.2%, tomato prices by 3.5% and banana prices by 2.6%.
global hunger
FAO economist Monika Totova believes that the situation in Ukraine could lead to an increase of 8-13 million in the number of hungry people in 2022-2023 and an increase in food prices by up to 22%. said TASSHe stated that the most significant price increases will occur in the Asia-Pacific region and the African region Sub-Saharan Africa, the Middle East and North Africa.
“The repercussions of the crisis are now being felt around the world, and skyrocketing prices of food, energy and fertilizers threaten to escalate global hunger.” declaration UN Secretary-General António Guterres.
European politicians are also warning of the threat of a food crisis. In particular, French President Emmanuel Macron called for an urgent international food security plan to prevent hunger in the most vulnerable countries.