From Farm to Fork: the food crisis

Source: CNN

Nations depend on their people to grow, and people depend on food to grow. It is therefore, of grave importance to nations across the globe, that more and more people cannot afford food. According to the research, around 258 million people in 58 nations and territories suffered severe food insecurity in 2022, an increase from 193 million in 53 countries and territories in 2021. Since the major share of reportage focuses on developed nations, in this paper we will look at some of the factors that led to a food shortage in the US and EU. The problem that lies at the crux of this shortage has to do with the supply-chain of food for these countries. Covid and Climate change led to supply chain disruptions across the globe. In America, it resulted in the increased costs of transportation, energy, and labour, among others. However, what seems to have exacerbated the problem is the Russia-Ukraine war. These countries have also witnessed record high inflation.

Climate Change

Climate change has affected the agricultural sector in various ways, including changes in temperature, precipitation, and extreme weather events. Food prices were already at their highest in a decade owing to disrupted supply chains and catastrophic weather events, such as the worst drought in almost a century in central and southern Brazil. In the United States, climate change has led to reduced yields of crops such as corn and soybeans due to increased heat and drought conditions in some regions (Walthall et al., 2012). Moreover, in developed countries like the USA and the EU bloc, farms are larger and invested in growing cash crops. The most widely grown crop in the US, for example, is corn, used to produce corn syrup, a commonly used product in processed foods. Therefore, they have been depending on exports for fresh produce. According to the United States Department of Agriculture (USDA), in 2020, the United States imported approximately 33% of its fresh fruit and 15% of its fresh vegetables. A supply-chain disruption caused by a climate event in any of the developing nations they import from severely affects prices for the same.

Russia-Ukraine Conflict

The conflict between Russia and Ukraine has led to production disruptions and transportation challenges, thereby impacting food and agro-product availability. In 2021, tensions between Russia and Ukraine reached a new peak, with clashes along the border and the buildup of Russian troops in the region. Ukraine is one of the world's largest producers and exporters of these commodities and is often referred to as the ‘breadbasket’ of the EU. There were also reports of disruptions to shipping routes along the Black Sea, which is a key transportation route for grains and other commodities, which have further impacted food shortages in the US and EU (Reuters, 2021). Finally the conflict has also led to fertiliser shortage in the US. This has had two fallouts: farmers either indefinitely delayed their crop cycle, or used natural fertilisers like dung, both of which have driven out the gross crop yields across farms in the US.

Inflation

Source: IMF

Most countries across the globe have reported record high rates of inflation, exacerbated by the covid 19. Food price inflation remains a pressing issue worldwide, as evidenced by the latest data available from December 2022 to March 2023. The countries most severely affected by this issue are situated in Africa, North America, Latin America, South Asia, Europe, and Central Asia. Moreover, as an aftermath of the Russia-Ukraine conflict, an already bad situation has worsened, with real food prices rising as shown in the figure. While several central banks have taken measures like increasing interest rates, it will take some time before those measures will reach the consumer.

Conclusion

While this paper has discussed the issue that developed countries faced, the extent of the problem in certain underdeveloped countries is unimaginable. In this globalised world, the trade of food is inevitable. However we have seen the perils of depending on imports for important produce and agro-product materials. The problems of climate change and international conflict are only growing. NOAA issued an El Nino Watch in response to enabling conditions for the development of El Nino, which could lead to record-breaking temperatures in 2023 or 2024, while the Russians claim the recent explosions at the Kremlin were drone strikes by Ukraine, which means that an offensive measure by the Russians is imminent. Moreover, this shortage presents a question: how has it affected productivity? While the US has seen record low unemployment overall, the unemployment rate in the transportation industry was 5.0% (not seasonally adjusted) in March 2023 (Bureau of Transportation Statistics 2023). Countries across the world must reflect on international as well as national supply-chain issues, because not doing so means people go to bed starving.

Works used can be found here.