What's New

As global food prices continue to rise and concerns grow over potential supply disruptions in the Black Sea region, policymakers and development practitioners are beginning to analyze the implications for global food markets and the potential for food crises. On March 5, 2022, the Agricultural Market Information System (AMIS) called an extraordinary meeting of the AMIS Rapid Response Forum.

The FAO Food Price Index hit a record high in February, exceeding the previous record of February 2011. The index rose 3.9 percent from January and 20.7 percent from February 2021. Vegetable oil, dairy, cereal, and meat price increases all contributed to the continued surge.

The escalating tensions in the Black Sea region heaped fresh risks on global food markets already struggling with soaring prices, supply-chain disruptions, and a bumpy recovery from the pandemic. Before the Ukraine crisis, overall conditions in markets for staple foods looked reasonably favourable and seemed to augur for softening prices during 2022, even as sharply rising food prices in domestic markets in many developing countries continue to raise concerns about greater food insecurity. The escalation of the conflict is now putting markets into serious turmoil.

The unfolding crisis in Ukraine has roiled commodity markets and threatens global food security. Ongoing fallout from the COVID-19 pandemic and other factors have already driven up food prices. Poor harvests in South America, strong global demand, and supply chain issues have reduced grain and oilseed inventories and driven prices to their highest levels since 2011-2013.

Over the last few years, global food systems have been disrupted by conflict, economic shocks, climate change, and the COVID-19 pandemic, increasing global food insecurity and malnutrition.

A Jan. 19 policy seminar examined the implications of fragile agrifood systems and the findings of FAO’s The State of Food and Agriculture 2021 (SOFA) report. The report analyzes the vulnerabilities of food supply chains and how at-risk populations such as those in rural areas cope with risks and shocks.