War and drought drove global food prices to record high in 2022

International costs for meals commodities like grain and vegetable oils had been the best on file final yr even after falling for 9 months in a row, the U.N. Meals and Agriculture Group mentioned, as Russia’s war in Ukraine, drought and different components drove up inflation and worsened hunger worldwide.

The FAO Meals Worth Index, which tracks month-to-month modifications within the worldwide costs of generally traded meals commodities, dipped by 1.9% in December from a month earlier, the Rome-based group mentioned Friday.

For the entire yr, it averaged 143.7 factors, greater than 14% above the 2021 common, which additionally noticed giant will increase.

The December decline was led by a drop within the worth of vegetable oils amid shrinking import demand, expectations of elevated soy oil manufacturing in South America and decrease crude oil prices. Grain and meat had been additionally down, whereas dairy and sugar rose barely.

“Calmer meals commodity costs are welcome after two very risky years,” FAO chief economist Maximo Torero mentioned in a ready assertion. “It is very important stay vigilant and preserve a robust deal with mitigating international meals insecurity on condition that world meals costs stay at elevated ranges, with many staples close to file highs, and with costs of rice rising, and nonetheless many dangers related to future provides.”

Final yr, the U.N. group’s Meals Worth Index hit the highest level since its records began in 1961, in accordance with FAO information.

Russia’s invasion of Ukraine in February exacerbated a meals disaster as a result of the 2 international locations had been leading global suppliers of wheat, barley, sunflower oil and other products, particularly to nations in elements of Africa, the Center East and Asia that had been already scuffling with starvation.

With crucial Black Sea provides disrupted, meals costs rose to file highs, rising inflation, poverty and meals insecurity in growing nations that depend on imports.

The struggle additionally jolted power markets and fertilizer provides, each key to meals manufacturing. That was on high of local weather shocks which have fueled hunger in locations just like the Horn of Africa. Ethiopia, Somalia and Kenya are badly affected by the worst drought in a long time, with the U.N. warning that elements of Somalia are going through famine. 1000’s of individuals have already died.

Costs for wheat and corn reached a file excessive final yr, although they fell in December together with the prices of different grains, the FAO mentioned. It mentioned harvests within the Southern Hemisphere boosted provides and there was robust competitors amongst exporters.

The group’s Vegetable Oil Worth Index hit an all-time excessive final yr, even because it tumbled in December to its lowest degree since February 2021. For all of 2022, the FAO Dairy Worth Index and Meat Worth Index additionally had been the best since 1990.