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LATEST NEWS UPDATES | World’s most vulnerable now paying even more, for less food: FAO

World’s most vulnerable now paying even more, for less food: FAO

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published Published on Jun 9, 2022   modified Modified on Jun 15, 2022

-United Nations News

Countries are expected to spend a staggering $1.8 trillion importing food they need this year; this would be a new world record but worryingly, it’s going to buy them less food, not more.

That’s according to the UN Food and Agriculture Organization (FAO) which on Thursday suggested that for some countries, the situation potentially heralded “an end of their resilience to higher prices”.

Ever-higher fixed costs for farmers of so-called “agricultural inputs” such as fertilizer and fuel, are likely to be responsible for this year’s bigger-than-ever global food import bill.

“In view of the soaring input prices, concerns about the weather, and increased market uncertainties stemming from the war in Ukraine, FAO’s latest forecasts point to a likely tightening of food markets and food import bills reaching a new record high,” said FAO economist Upali Galketi Aratchilage.

Priced out

In its latest Food Outlook report, the UN agency explained that all but $2 billion of the additional $51 billion that’s going to be spent worldwide on edible imports this year was owing to higher prices.

Animal fats and vegetable oils will be the single biggest contributor to higher import bills this year, “although cereals are not far behind for developed countries”, FAO said.

“Developing countries, as a whole, are reducing imports of cereals, oilseeds and meat, which reflects their incapacity to cover the increase in prices.”

Among the most vulnerable nations, FAO estimated that Least Developed Countries will have little option but to spend five per cent less importing food this year.

Sub-Saharan African States and other nations that buy more food than they export are likely to face an increase in costs, for which they’ll get lower amounts of essential foodstuffs.

“These are alarming signs from a food security perspective,” said FAO, which also warned that “importers will find it difficult to finance rising international costs”, and that these could, potentially, break them.

To help avert even greater food insecurity among low-income nations and to guarantee food imports, the UN agency has recommended the creation of a balance-of-payment support mechanism.

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United Nations News, 9 June, 2022, https://news.un.org/en/story/2022/06/1120012


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