Agricultural Inputs

During 2021 and 2022, global food and fertilizer prices spiked due to several overlapping factors. Demand rose as the world economy emerged from the COVID-19 recession; global supply chains suffered major disruptions associated with the uneven recovery; and the outbreak of war between Russia and Ukraine—both key food and fertilizer producers—generated yet another shock.

The FAO Food Price Index continued its decline in February, falling marginally due to declines in cereal and vegetable oil prices. The February Index was down 10.5 percent from its 2023 level.

The FAO Food Price Index continued its decline in January, driven mainly by falling cereal and meat prices. The January 2024 Index was 10.4 percent below its January 2023 level.

Achieving efficient and effective fertilizer usage in agricultural production is a critically important economic and environmental policy objective for countries at all stages of economic development, although the nature of the policy problem may vary radically in different contexts.

Food prices continued to decline, albeit more slowly, in October, according to the latest FAO Food Price Index. The Index was down 0.5 percent from September and 10.9 percent from October 2022.