Global Food Security Update February 3, 2023

Russia’s invasion of Ukraine set off a round of severe price increases for basic foodstuffs including grains, notably wheat, and oils including sunflower oil; prices were already elevated by the pandemic’s impact and supply chain issues. Major disruptions in the energy markets resulting from Russia’s invasion have also disrupted food markets; fertilizer, food processing, and transportation are among the energy-intensive inputs into food supplies that fluctuate with the price of energy. Demand for corn for ethanol has also increased, putting further pressure on corn supplies and exacerbating food shortages. Rising food prices have made the challenge of controlling inflation and ameliorating a recession that much more difficult. The danger of a severe food crisis still persists, with many countries around the world at risk for further food insecurity because of higher prices and lack of supply.