The global food crisis is worsening, with rising food insecurity and scarcity of essential commodities like rice, wheat, and sugar. Let’s see what’s going on!
- Rice: A global shortage of rice has been caused by a mixture of bad weather in rice-producing areas like China and Pakistan, as well as the ongoing war in Ukraine.
- Wheat: Ukraine is one of the main suppliers of wheat, and the ongoing war in the country has disrupted its production and export.
- Corn: Market pressures on the grains and oilseeds markets include sanctions and export restrictions on a drop in production and supply of grains and oil.
- Vegetable oils: The price of vegetable oils has increased due to market pressures, including sanctions and export restrictions on a drop in production and supply.
- Animal feed and protein: The market price of hogs, cattle, and poultry has increased at a rate near or higher than their respective input costs, leading to strong margins in the US.
- Sugar: India, a major producer of sugar, has decided not to raise its quota on sugar exports, and other major producers like Brazil, Europe, Mexico, Thailand, China, and Pakistan are also facing low supply of the product, causing concerns for a global shortage.
- Canned pet food: Producers are already low in stock from bad weather and trying to keep up with the increase in demand, making a shortage inevitable.
- Eggs: The culling of cows has increased in 2022, leaving less cows for the years to come, which might lead to a shortage of eggs.
- Bread and flour: A bread, flour, and wheat shortage are likely on the horizon largely because of the ongoing war in Ukraine.
- Maize and wheat: On a year-on-year basis, maize and wheat prices are 29% and 20% lower, respectively, while rice prices are 39% higher.
