Ukraine War: Poorer Countries not Finding it Easy to Deal with Surging Food Prices, FAO Says

Akanimo Sampson

Akanimo Sampson

By Akanimo Sampson

Food and Agriculture Organisation of the United Nations (FAO) says as a result of the war in Ukraine, poorer countries are finding it increasingly tough to deal with surging food prices.

FAO is therefore, calling for a global Food Import Financing Facility (FIFF) to help poorer countries deal with surging prices.

The FIFF, which is also aimed at increasing global agricultural production and productivity in a sustainable way, is one of six policy proposals put together by FAO in response to the crisis.

Russia and Ukraine are important players in the global food market, with almost 50 countries dependant on them for at least 30 percent of their wheat import needs.

Russia is also a key exporter of fertilizers. In 2020, it ranked as the top exporter of nitrogen fertilizers, the second leading supplier of potassium, and the third largest exporter of phosphorous fertilizer. Energy prices have also been rising, mostly due to market conditions.

With the COVID-19 pandemic already squeezing budgets, the conflict in Eastern Europe has pushed FAO’s Food Price Index to an all-time high, hitting the vulnerable the most. Higher fertilizer prices, meanwhile, are putting future harvests at risk globally.

According to FAO simulations, the conflict could result in as many as 13.1 million more people going hungry between 2022 and 2026, compared to the baseline.

“The war can have multiple implications for global markets and food security’’, FAO Director-General QU Dongyu said today in a video message to a Group of 20 meeting of Finance Ministers and Central Bank Governors in Washington.

The FIFF, which would complement existing mechanisms within the UN system, would be strictly based on urgent needs and limited to low and lower middle-income net food-importing countries, Qu said.

In addition, it is designed to increase future resilience by asking eligible countries to commit to invest more in sustainable agrifood systems. Qu said the FIFF has been stress-tested by FAO for its impact on the global markets and would be convenient to administrate and scale up.

“The lesson learned is that we need to increase agricultural production and productivity in the world while being sustainable’’, Qu told the meeting. “It is high time to work together for ending hunger and malnutrition in the world.”

Qu was invited to illustrate the economic consequences of the war in Ukraine, especially on the food security, by Indonesia, the current holder of the G20 presidency.

Our motto is: ‘We stand for the truth, irrespective of who tells it’. Driven by this philosophy, our aim has been to create a platform where every voice, every narrative – provided they are decently expressed –  is allowed expression. Our belief is that by promoting unfettered competition of ideas, the truth will eventually emerge. Obviously, doing this while resisting any temptation to be captured by any special interest or tendency makes survival as an online newspaper more challenging. This is why we will appreciate any support from our readers:

Bank details:

Account Name: The News Chronicle
Bank: UBA
Account No.: 1022603956 (Naira)

Domiciliary Account  – dollar-denominated:
Bank:  UBA
Account Number: 3002835294 ($)

Please email details of your bank transfer to: publisher@thenews-chronicle.com or send them by WhatsApp to: 07058078841

Professor Jideofor Adibe

Publisher

Leave a Reply

Your email address will not be published.

Related Posts

ADVERTISEMENT

What's New?

ADVERTISEMENT

Recommended