Pricey Nutrients
Expensive fertilizers are just one of many factors that have driven food prices to a record level. In response, rice farmers across Asia are scaling back usage of the nutrients, threatening harvests of a staple that feeds half the world.
The repercussions could be huge, predicts International Rice Research Institute. Yields could drop 10% in the next season, causing a loss of 36 million tons of rice, or the equivalent of feeding 500 million people. That could exacerbate food inflation that’s contributing to turmoil gripping developing nations such as Egypt, Tunisia and Sri Lanka.
Costly Shipping
Food prices are also being buoyed by high shipping costs, which is bad news for grain-importing countries, particularly in Africa and Asia.
The International Chamber of Shipping said about 80 to 100 ships have been unable to leave Ukrainian waters for almost two months due to underwater mines and military blockades.
Bulk freight rates are rising as owners and charterers expect ships will be tied up for longer periods. And that’s at a time when many importers are struggling to afford to buy enough grain.
Food for Thought
The quality of Indian wheat — which has put off some buyers in the past — will be crucial as the country’s grain becomes competitive for the first time in years as the Ukraine war upends global trade flows.
In Canada, where drought pummeled harvests last year, snow now threatens to delay crop plantings. The wintry weather there should mean more maple syrup because farmers can tap trees for longer.
And prices of fish crackers, a popular side dish in Indonesia, are set to surge as it becomes more expensive to make them.
