A 22 percent increase highly plausible.
In a report released Friday, the United Nations Food and Agriculture Organization warned that global food prices could surge another 22 percent in response to the Russian war on Ukraine. They noted that food prices have already reached record highs and are likely to go higher.
The report states that the output of food production in Ukraine and Russia put together amounts to over a tenth of global calories. The global output of those countries has fallen since the Russian invasion in late February, resulting in a “sudden and steep reduction” of imports from those two countries.
Fifty nations rely on Russia and Ukraine for 30 percent of their wheat supply when considered together, the agency director said. “Many of them are least developed countries of low income, food-deficit countries in North Africa, Asia and the Near East,” he said.
Data released by the U.S. Labor Department on Thursday showed a 7.9 increase in prices over the past 12 months, 0.8 percent in February alone. In particular, Americans’ have experienced high gas prices that have been exacerbated by a U.S. ban on Russian oil imports.
A risk to American farmers and food producers is compounded by higher prices for energy and a reduction in the availability of Russian and European fertilizers.
As the Lord Leads, Pray with Us…
- For USDA Secretary Vilsack to seek God’s wisdom in handling farming and agricultural needs in this nation.
- For discernment for the president and his advisors on food stability, production, and supply chains.
- For Labor Department officials as they collect and report consumer prices and inflationary data.
Sources: The Hill, Bloomberg News
