Food security at risk in Africa

Food prices have already risen globally as a result of pandemic-related shipping disruptions, rising costs for farmers and adverse weather, and wheat is no exception. 

Between April 2020 and December 2021, the price of wheat increased 80 percent, according to data from the International Monetary Fund.

Russia produces close to 80 million metric tons of wheat a year and exports close to 30 million tons, while Ukraine exports about 20 to 25 million tons a year.

Russia’s agricultural exports, which also include corn, barley and sunflower oil rose 15% y-o-y to hit 2.5 mn tons in March, with Egypt among the top buyers, according to figures from Swiss data firm Agflow cited by Bloomberg.

The loss of Ukrainian commodities including grain and sunflower oil means global food markets are continuing to feel the strain, Bloomberg reports, even as Russia ships supplies to some of the customers who usually buy from Ukraine..

Meanwhile, a new report by the United Nations Conference on Trade and Development (UNCTAD) has warned about the impact of the war on the food situation in Africa.

Between 2018 and 2020, Russia accounted for nearly a third of wheat imports to the continent, while around 12% come from Ukraine.

The UNCTAD report said up to 25 African countries, especially the least developed economies, relied on wheat imports from Russia and Ukraine.

The lack of spare capacity in Africa limits the chances of offsetting any lost supplies, while surging costs for fertilizer will be an extra burden for farmers, the UN warned.

Meanwhile, rising costs for shipping and for grains and other staple foods are pushing prices higher, hitting the poorest people the hardest, the report said.

Analysts said that two-thirds of Russian wheat and barley for the season had already been exported, but that if sanctions ended up removing the remainder of the crop from foreign markets that could drive global prices up by nearly a third.