UKRAINE CRISIS COULD PUSH MILLIONS INTO POVERTY AND HUNGER
The UN Food and Agriculture Organization (FAO) is anxiously monitoring the fallout from the war in Ukraine. The rise in food and fertilizer prices could push millions into poverty and hunger worldwide By Howard Hudson, OPEC Fund
T
he crisis in Ukraine is having a severe impact on the global supply of
foodstuffs and fertilizers. International food and feed prices, already at historically high levels, are expected to increase by between eight and 22 percent, says FAO in a new policy note. Meanwhile, the number of undernourished people is foreseen to rise next year by between eight and 13 million worldwide, most notably in the Asia-Pacific region, followed by sub- Saharan Africa, then Middle East and North Africa. Before the conflict, Ukraine and the Russian Federation were ranked among the world’s biggest producers of agricultural commodities. Ukraine was among the top three global exporters of maize, rapeseed, wheat, sunflower oil and sunflower seeds, while the Russian Federation was the world’s second largest exporter of potassic
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and phosphorous fertilizers and the top exporter of nitrogen fertilizers. The crisis is impacting Ukraine in terms of damage to agricultural infrastructure such as farmland, processing and storage facilities. An early FAO assessment suggests that between 20 and 30 percent of farmland dedicated to winter cereals, maize and sunflower seed will either not be planted or remain unharvested during the current biennium. Meanwhile, disruption to processing and storage facilities has already led to the suspension of oilseed crushing operations for existing stock. Restrictions on transport and export
facilities are also taking a toll. Roads and railways are heavily disrupted, while airports and seaports are either fully or partially closed. New export license requirements have been introduced for certain crops, while insurance premiums have skyrocketed for ships entering the
“Agriculture is the backbone of many
developing countries… the potential reduction of GDP growth in several parts of the world
will affect the global demand for agrifood products with negative
consequences for global food security, while
also likely reducing the availability of funds for
development, in particular if military expenses increase globally.”
UN Food and Agriculture Organization (FAO)
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