FX.co ★ Russia-Ukraine war accounts for global food crisis

According to Maurizio Martin, the Deputy Director at the UN Food and Agriculture Organization (FAO), the number of starving people in the world has grown exponentially over the past two years. Moreover, it rose by 60 million. The official stressed that the situation was exacerbated due to the prolonged Russia-Ukraine crisis.

Martin said that the number of people affected by hunger would increase by 18 million to 218 million globally amid the escalation of the current geopolitical conflict. Last year, 200 million people faced daily acute food insecurity. Moreover, the number of starving people grew by 40 million. Maurizio Martin estimated that 53 countries around the world were at risk of famine.

The FAO Deputy Director noted that the further situation with the global food supply would be influenced by a number of factors, including the development of the Russia-Ukraine war. According to Martin, grain supply chain bottlenecks have posed a real threat to developing countries. Currently, 36 out of 55 states are facing a food crisis. They buy more than 10% of wheat from Russia and Ukraine. However, the disruption of logistic chains delays the supply. The situation has deteriorated due to soaring wheat prices. Moreover, even 1% increase in grain prices may cause global hunger affecting 10 million people.

The FAO Deputy Director believes the negative consequences of the Russia-Ukraine crisis account for a significant increase in wheat prices and difficulties in obtaining fertilizers. Martin concludes that in case the prices remain high and there is limited access to agriculture in developing countries, it will result in a significant reduction in yields.