World food prices hit record highs

According to the Food and Agriculture Organization of the United Nations (FAO), the food price index in March increased by 34% compared to the same period last year, reaching an average of 159.3 points.

The Russia-Ukraine conflict has pushed up food prices as the two countries are major exporters of cereals and sunflower oil, and account for about 30% of global wheat production.

The fact that Moscow conducted a military campaign in Ukraine caused a sudden cut in food supplies from the two countries. Although Russia continues to export wheat, transactions have been affected by a series of economic sanctions from the West.

FAO data shows that around the world there are nearly 50 countries that import at least 30% of their wheat needs from Russia and Ukraine.

“The conflict in Ukraine is raising concerns about food security around the world. We are seeing a large increase in food prices due to the impact of supply cuts from Russia and Ukraine” said Mr. Beth Bechdol, FAO Deputy Director General.

Another reason for the price increase is global food inflation due to poor 2021 harvests due to bad weather. Besides, the increased demand after 2 years of the pandemic also makes many items more expensive.

A sharp increase in food prices will affect poor countries, especially those that are still recovering from the severe consequences of the COVID-19 pandemic.