FOOD SECURITY ISSUES CONTINUE
Food Security Issues Continue…
After several signs of a slow and cautious return to normalcy from the pandemic. It appears food shortages are continuing in 2022. So, this is what is causing many issues. Thus far, 2022 has experienced a similar fall 2020. It means food supply issues at the grocery outlets. This time around it appears the food shortages are spread across the store. Hence, shoppers who are hoping to get their hands on particular products may find it difficult right now.
Consumer Brands Association representing the consumer-packaged goods industry claim shortages are spotty. It is not widespread. So, it is dissimilar to as at the beginning of the pandemic. At that time consumers went out in panic. Their view was to stockpile. Hence, they cleared the shelves.
The Russian invasion of Ukraine
The Russian invasion of Ukraine causes a drop-in food production. Its invasion by Russia completely disrupts the supply chain. Thus far, both countries are key suppliers of wheat and chickpea for the world. The world market is lacking supplies. In fact, growers in the USA are dropping chickpea production. They are favouring other crops. So far, a ban on exports by India to enact to protect its food security sees rising prices of wheat. This leads to a shortage.
Brazil, with its focus to divert more sugarcane to produce ethanol rather than sugar, will cause a short supply of sugar. Thus far, Brazil favours ethanol production due to high energy costs. Ethanol, which is also known as alcohol is used for a range of products.
When you combine all these with the continuing supply chain issues due to the pandemic it contributes to inflation and food insecurity.
Canned and paper goods
People are stockpiling canned foods since 2020. Thus, manufacturers continue to face challenges with aluminum shortages. This shortage has been continuing throughout COVID-19. Therefore, there has been a short supply of products such as tomato paste, and canned vegetables.
Toilet paper has been at the top of the list for short-supply goods. It has been so for the past two years. Apparently, it has been further affected by the Russia-Ukraine war. Thus, it causes a shortage of supplies from Europe. It results in a shortage of toilet paper and price rises. Furthermore, it affects other paper goods like paper towels and tissues.
So far, the continuing shortage of aluminum challenges leads to shortages in dog and cat foods. Thus far, many retailers are reporting bare shelves for pet foods. So, many pet owners scramble for their friends’ staple and treat.
Food price inflation
Food price inflation remains high throughout the world. Information indicates high inflation amongst all low-income and middle-income countries. Most of these countries experience double-digit inflation. In fact, inflation is high in high-income countries too. Food price inflation is increasing sharply.
Thus far, after a brief relief in 2022, fertiliser prices are rising again. Together with-it energy prices are increasing too. Thus far, policy measures to restrict export limit global fertiliser availability. The war in Ukraine alters the global trading patterns too. For example, the production and consumption of commodities keep prices at high levels. So, exacerbating food insecurity and inflation expects to continue through the end of 2024.
Thus far, the high food prices trigger a global crisis. It is driving many millions into extreme poverty. So, it magnifies hunger and malnutrition worldwide. The people who experience acute food insecurity will require urgent assistance.
Ukraine war
Since the start of the war in Ukraine, many countries impose trade-related policies. Hence, the global food crisis is made worse by the surging number of trade restrictions. Many more countries are placing trade embargoes with the objective to improve domestic supplies. Thus, hopes to reduce prices.
As at end of September 2022, 29 food export bans are in place in 20 countries. Further 6 countries implement 12 export-limiting measures.
World bank action
In response to the ongoing food security crisis, the World Bank is making up to $30 billion available. It will provide assistance in areas such as nutrition, agriculture, water supply, irrigation and social protection. This finance package will encourage food and fertilizer production. It plans to enhance food systems and facilitate greater trade too. Furthermore, it is to support vulnerable households and food producers.
It plans to provide a $300 million project in Bolivia with a view to increasing food security. Thus, it will contribute to better market access and adoption of climate-smart agricultural practices. It allocates a $315 million loan to support Ghana, Sierra Leone, and Chad. The loan package will help increase preparation against food insecurity. Thus, it hopes to improve the resilience of its food systems.
Resilience support projects
Egypt is to receive $500 million to boost its efforts to ensure that poor and vulnerable households have uninterrupted access to food. It will help to strengthen the country’s resilience to the food crisis. In addition, it will provide support to reforms that will help to improve nutritional outcomes.
A $130 million loan for Tunisia seeks to lessen the Ukraine war impacts. The funding is vital for soft wheat imports. It will provide support to cover barley imports for dairy production. Smallholder farmers will use barley as seeds for the upcoming planting season too.
Thus far, the $2.3 billion allocation for eastern and southern Africa will help increase the resilience of the region’s food systems. It will help the ability to tackle growing food insecurity too. So, the program will promote inter-agency food crisis response. Furthermore, it will help bolster medium and long-term efforts for resilient agricultural production.
Global Alliance
The Global Alliance for Food Security aims to create a catalyst for an immediate and concerted response to the unfolding global hunger crisis. So far, the heads of the FAO, IMF, World Bank Group, WFP, and WTO work together on the Global Food Security and Nutrition Crisis. Thus far, it notes considerable progress has been made in the key areas. It facilitates trade and the international supply of food and boosts production. Furthermore, it will provide support to the vulnerable, and invest in climate-resilient agriculture.
