Experts concluded that the food crisis raging across the world came into being long before Russia’s invasion of Ukraine.
The food crisis was fueled by soaring food prices, the phenomenon emerged before the ongoing geopolitical jitters in East Europe. Analysts pinpointed the underlying reasons that are to blame such as global rampant inflation and sky-high energy prices.
In early 2022, food prices skyrocketed due to adverse weather conditions and the energy crisis. Food prices hit multi-year highs at the beginning of February.
Agriculture is recognized as the most energy-consuming sector in the global economy nowadays. Before any product is stacked on a supermarket shelf, it makes a long way from the time it is grown, picked, stored and until it is processed and delivered to a retailer. Apart from these huge expenses, farmers have to allocate big money for fertilizers and farm machinery. In terms of energy consumption, the food industry alone consumes almost 30% of the energy required for the whole production cycle.
Anti-Russian sanctions imposed by the Western allies in retaliation for the Kremlin’s hostilities in Ukraine backfired painfully on the EU economy. Eventually, the EU countries got trapped in an economic war. The EU authorities decided to phase out Russian exports, but in practice, the boycott entailed serious repercussions. Frozen bank accounts put a great strain on the EU economy as they derail supply chains in wheat, barley, corn, and sunflower oil deliveries from Russia, one of the world’s largest exporters. Supplies from Ukraine are also crippled.
Earlier, Tomson Phiri, a spokesman for the UN World Food Program, warned about mounting risks of famine on the global scale on the back of the Russia – Ukraine conflict and elevated food prices. Nowadays, Russia and Ukraine ensure 30% of global wheat exports, 20% of corn exports, and 76% of sunflower seeds exports.
