Food price crisis threatens many countries

For the first time in 30 years, bread sellers in Egypt consider raising the price of this staple food. Egypt is the world’s largest wheat importer. Last year, the country imported 5.5 million tons of wheat and its most reliable trading partners were Russia and Ukraine. Therefore, the escalating tension in Eastern Europe is having a direct impact on the price of bread in Egypt.

Robert Halver, market analyst at Baader Bank, said: “The impact of Russia-Ukraine tensions is becoming more apparent every day, not just gas stations or monthly heating bills. The most important thing is the food. The food will be more expensive. Wheat for example. The cultivation and harvesting of wheat in Ukraine should be happening right now, but in reality, of course, it is not possible because of the current situation. There is war. This means that in the future we will have to pay much more for basic foods and this will contribute to higher inflation.”

This will be bad news for many people in the Middle East and Africa, especially those who already live on the edge of poverty.

Gas is important for agriculture. In addition to being a fuel for transporting food, gas is also used to create fertilizer materials. Norway-based Yara International, which specializes in the production of chemical fertilizers, has recently had to cut its urea and ammonia production capacity by 45% in Europe due to soaring fuel prices.

Ms. Johanna Mendelson Forman, Lecturer at American University, said: “You can’t grow wheat, barley or soybeans without fertilizer. We used to enjoy globalization when we traded all the necessities. But now things will be different, everyone, including rich countries, will feel how the food crisis is gradually increasing from the price of essential goods. products on the shelf”.

The world food situation is facing not only an obstacle named Russia – Ukraine but also many other difficulties. Drought in South America, plus supply chain stagnation after 2 years of rest due to the epidemic and now geopolitical tensions. All of which makes the global food supply chain very likely to fall into crisis.

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