Food prices soar to record levels on Ukraine war disruptions

Apr 7, 2022, 2:42 PM | Updated: Apr 8, 2022, 6:10 am
FILE - Smoke from an oil refinery rises over a field of sunflowers near the city of Lisichansk, Luh...

FILE - Smoke from an oil refinery rises over a field of sunflowers near the city of Lisichansk, Luhansk region, eastern Ukraine on July 26, 2014. Prices for food commodities like grains and vegetable oils reached their highest levels ever last month because of Russia's war in Ukraine and the “massive supply disruptions” it is causing, the United Nations said Friday, April 8, 2022. (AP Photo/Dmitry Lovetsky)

(AP Photo/Dmitry Lovetsky)

ROME (AP) — Prices for food commodities like grains and vegetable oils reached their highest levels ever last month largely because of Russia’s war in Ukraine and the “massive supply disruptions” it is causing, threatening millions of people in Africa, the Middle East and elsewhere with hunger and malnourishment, the United Nations said Friday.

The U.N. Food and Agriculture Organization said its Food Price Index, which tracks monthly changes in international prices for a basket of commodities, averaged 159.3 points last month, up 12.6% from February. As it is, the February index was the highest level since its inception in 1990.

FAO said the war in Ukraine was largely responsible for the 17.1% rise in the price of grains, including wheat and others like oats, barley and corn. Together, Russia and Ukraine account for around 30% and 20% of global wheat and corn exports, respectively.

While predictable given February’s steep rise, “this is really remarkable,” said Josef Schmidhuber, deputy director of FAO’s markets and trade division. “Clearly, these very high prices for food require urgent action.”

The biggest price increases were for vegetable oils: that price index rose 23.2%, driven by higher quotations for sunflower seed oil that is used for cooking. Ukraine is the world’s leading exporter of sunflower oil, and Russia is No. 2.

“There is, of course, a massive supply disruption, and that massive supply disruption from the Black Sea region has fueled prices for vegetable oil,” Schmidhuber told reporters in Geneva.

He said he couldn’t calculate how much the war was to blame for the record food prices, noting that poor weather conditions in the United States and China also were blamed for crop concerns. But he said “logistical factors” were playing a big role.

“Essentially, there are no exports through the Black Sea, and exports through the Baltics is practically also coming to an end,” he said.

Soaring food prices and disruption to supplies coming from Russia and Ukraine have threatened food shortages in countries in the Middle East, Africa and parts of Asia where many people already were not getting enough to eat.

Those nations rely on affordable supplies of wheat and other grains from the Black Sea region to feed millions of people who subsist on subsidized bread and bargain noodles, and they now face the possibility of further political instability.

Other large grain producers like the United States, Canada, France, Australia and Argentina are being closely watched to see if they can quickly ramp up production to fill in the gaps, but farmers face issues like climbing fuel and fertilizer costs exacerbated by the war, drought and supply chain disruptions.

In the Sahel region of Central and West Africa, the disruptions from the war have added to an already precarious food situation caused by COVID-19, conflicts, poor weather and other structural problems, said Sib Ollo, senior researcher for the World Food Program for West and Central Africa in Dakar, Senegal.

“There is a sharp deterioration of the food and nutrition security in the region,” he told reporters, saying 6 million children are malnourished and nearly 16 million people in urban areas are at risk of food insecurity.

Farmers, he said, were particularly worried that they would not be able to access fertilizers produced in the Black Sea region. Russia is a leading global exporter.

“The cost of fertilizers has increased by almost 30% in many places of this region due to the supply disruption that we see provoked by a crisis in Ukraine,” he said.

The World Food Program has appealed for $777 million to meet the needs of 22 million people in the Sahel region and Nigeria over six months, he said.

To address the needs of food-importing countries, the FAO was developing a proposal for a mechanism to alleviate the import costs for the poorest countries, Schmidhuber said. The proposal calls for eligible countries to commit to added investments in their own agricultural productivity to obtain import credits to help soften the blow.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - This Sept. 2015, photo provided by NOAA Fisheries shows an aerial view of adult female South...
Associated Press

Researchers: Inbreeding a big problem for endangered orcas

People have taken many steps in recent decades to help the Pacific Northwest's endangered killer whales, which have long suffered from starvation, pollution and the legacy of having many of their number captured for display in marine parks.
20 hours ago
FILE - Hiring signs are displayed at a grocery store in Arlington Heights, Ill., Jan. 13, 2023. Emp...
Associated Press

Pay transparency is spreading. Here’s what you need to know

U.S. employers are increasingly posting salary ranges for job openings, even in states where it’s not required by law, according to analysts with several major job search websites.
20 hours ago
Meadowdale High School 9th grade students Juanangel Avila, right, and Legacy Marshall, left, work t...
David Klepper and Manuel Valdes, Associated Press

Seattle high school teacher advocates for better digital literacy in schools

Shawn Lee, a high school social studies teacher in Seattle, wants to see lessons on internet akin to a kind of 21st century driver's education, an essential for modern life.
20 hours ago
South Carolina Senators hear from the parents of people who died from fentanyl overdose on Jan. 19,...
Associated Press

With overdoses up, states look at harsher fentanyl penalties

State lawmakers nationwide are responding to the deadliest overdose crisis in U.S. history by pushing harsher penalties for possessing fentanyl and other powerful lab-made opioids that are connected to about 70,000 deaths a year.
20 hours ago
FILE - In this July 3, 2014, file photo, the Microsoft Corp. logo is displayed outside the Microsof...
Associated Press

Microsoft adds AI tools to Office apps like Outlook, Word

Microsoft is infusing artificial intelligence tools into its Office software, including Word, Excel and Outlook emails.
4 days ago
FILE - This photo provided by the Alaska Volcano Observatory/U.S. Geological Survey shows the Tanag...
Associated Press

Alaska volcanoes now pose lower threat, after quakes slow

Diminished earthquake activity led authorities Thursday to reduce the warning levels at two volcanoes on an uninhabited island in Alaska’s Aleutian chain because of the decreased potential for eruptions.
4 days ago

Sponsored Articles

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!
safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Food prices soar to record levels on Ukraine war disruptions