Input Markets

Russia’s invasion of Ukraine in February 2022 sent a shock through global fertilizer markets. All agricultural trade in the region was disrupted for a time, and a number of countries imposed economic sanctions on major fertilizer producers Russia and its ally Belarus (the latter already targeted pre-invasion by European Union fertilizer export sanctions). Prices spiked, resulting in fears of widespread impacts on agricultural production. Since then, fertilizer prices have fallen from those initial highs and new trade routes and patterns have emerged.

Protectionist policies such as export restrictions are often used as an immediate response to spiking food prices and other food shocks, such as those posed by the COVID-19 pandemic. These policies are increasingly being recognized as detrimental to long-term global food security and can also have impacts for local food security, particularly for low-income and net food importing countries. However, a lack of real-time data makes it difficult for policymakers to see how these responses are truly impacting food markets within their countries.

The FAO Food Price Index rose slightly in April; but remains almost 20 percent below its April 2022 level. Sharp increases in the price of sugar drove the majority of the month-to-month increase.

Food prices fell by 0.8 percent in January, according to the FAO Food Price Index. This latest decline brings the Index to the lowest point seen since its peak in March 2022.

The FAO Food Price Index held steady in November and was only 0.3 percent above its November 2021 level. Rising vegetable oil prices were checked by declines in cereal prices.