World Faces Fresh Food Price Surge, FAO Warns
The FAO chief economist said wars and a strong El Nino are raising fuel and fertilizer costs and could push tens of millions into acute food insecurity.
- United Nations Food and Agriculture Organization chief economist Maximo Torero warned that wars in Iran and Ukraine, coupled with El Niño, are creating a 'perfect storm' driving global food prices higher by year-end.
- Conflict-Driven damage to Ukraine's infrastructure and tensions in the Strait of Hormuz are disrupting energy markets, affecting vital agricultural inputs like diesel and natural gas used for fertilizers, Torero said.
- Australia reported winter crop production down 21% due to input costs, while delayed monsoons in India this month threaten rice yields; the American Farm Bureau Federation projects U.S. farmers could lose $32 billion in 2027.
- "The transmission from the commodity to the final food price is around three to six months," Torero said, meaning significant increases will reach consumers by year-end and accelerate next year.
- As global markets face these combined pressures, the resulting food insecurity could impact tens of millions. While commodity prices have been relatively benign recently, these compounding factors suggest the 2022 inflation surge may be followed by new price volatility.
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16 Articles
Father's Day: Procon reinforces guidelines to avoid problems during shopping The world can face a new wave of food inflation, driven by the combination of the war between Iran and Israel, the conflict in Ukraine and the effects of El Niño on agricultural production. The warning is from Maximo Torero, chief economist of the Food and Agriculture Organization of the United Nations (FAO), which predicts a high price of agricultural commodities this …
The return of the war in the Middle East, the continuation of the conflict between Russia and Ukraine and the arrival of the El Niño alight worldwide, especially for productive sectors dependent on raw materials such as oil and food.Specialists from the Food and Agriculture Organization of the United Nations (FAO) warn that increasing costs and reducing crop productivity are the main impacts on the global productive chain.
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