Kavan Choksi on High Food Prices

With stock market crashes and rapidly-rising oil prices, the repercussions of the Ukraine-Russia conflict have been felt across the world. However, these markets are not alone in feeling the adverse effects of the conflict. This year, food prices have reached new highs as friction reduces major wheat and fertilizer shipments from these nations, while droughts, floods, and heat exacerbated by climate change destroy more harvests.

 

According to the IPES, wheat prices reached a 14-year high in March, while corn prices reached their highest level ever. Additionally, for families in many countries, particularly the poorest, necessities have become more expensive, making matters even more difficult for those already budgeting carefully.

 

According to IPES, climate change, pervasive poverty, and international conflicts generate "endemic and widespread concerns" about global food security. Kavan Choksi believes it implies that increased food costs may become the new normal unless officials take action to mitigate rising prices.

 

Why are food costs so high at the moment?

Russia and Ukraine produce around 30% of global wheat exports. However, the decrease in Russian and Ukrainian exports has increased competition for the remaining wheat on the world market. That is especially onerous for poorer, debt-ridden countries that rely mainly on imports, notes Kavan Choksi.

 

Can Increased Cultivation Improve Global Food Supply?

According to the London-based Energy and Climate Intelligence Unit, many wheat-growing countries are increasing crop planting. However, Chemical fertilizer shortages have impeded global efforts to expand production. Last year, Russia and Belarus produced 40% of international potash exports. In addition, Kavan Choksi points out that factors like droughts and heatwaves make it difficult for farmers to produce a reliable crop.

 

Furthermore, a finite amount of land is available to produce additional wheat, maize, and rice. The expansion of farming typically comes at the expense of forests critical to maintaining climate stability, which opens the way for an entirely different set of adverse conditions.