AP

Double whammy: Both farmers and consumers hit by high prices

Jun 9, 2022, 11:30 AM | Updated: Jun 11, 2022, 6:24 am

FILE - Scattered grain sits inside a warehouse damaged by Russian attacks in Cherkaska Lozova, outs...

FILE - Scattered grain sits inside a warehouse damaged by Russian attacks in Cherkaska Lozova, outskirts of Kharkiv, eastern Ukraine, May 28, 2022. Russia and Turkey voiced support Wednesday, June 8, 2022, for the creation of a safe maritime corridor in the Black Sea so Ukraine can export grain to global markets amid an escalating world food crisis. But Russia demanded that the Black Sea be demined and Turkey said allowing the Ukraine exports should be accompanied by easing Western sanctions against Russia. (AP Photo/Bernat Armangue, File)

(AP Photo/Bernat Armangue, File)

ROME (AP) — Food import bills will reach a record high this year and food markets are likely to tighten around the world, according to a glum new forecast by a U.N. food agency.

The Food Outlook, issued twice a year by the Food and Agriculture Organization, also found that “many vulnerable countries are paying more but receiving less food” in imports.

The report issued Thursday by the Rome-based agency noted that developing countries are reducing imports of cereals, oilseeds and meats, reflecting their inability to cover the price increases.

The forecast cited “soaring input prices, concerns about the weather, and increased market uncertainties stemming from the war in Ukraine,” which has seen millions of tons of grain stuck in silos and unable to be shipped abroad from that major agricultural exporter due to the Russian invasion.

With Ukraine’s next grain harvest due within weeks, and no imminent sign of a let-up in the war unleashed by Russia on its neighbor, the food security of import-dependent countries in Africa and the Middle East could worsen.

Its forecast points to a “likely tightening of food markets and import bills reaching a new record high,” said Upali Galketi Aratchilage, an FAO economist and lead editor of the report.

The outlook discussed how agricultural sectors are struggling with rising costs of production, especially fertilizer and fuel, which could trigger further increases in food prices.

Russia and its ally Belarus are major exporters of fertilizer. But while international sanctions against Russia for its war against Ukraine haven’t targeted food exports, sanctions regarding Russian shipping and insurance for such shipping has complicated logistics for Russian farm exports.

Spiking prices for agricultural production inputs, such as rising energy costs, could call into question whether the world’s farmers can afford to buy them, wrote FAO experts in markets and trade. That scenario applies to major exporting countries as well, the report said. Some North American farmers are shifting from maize to soy, which requires less nitrogen fertilizer, the report noted.

All these factors point to “low (and falling) real prices for farmers, despite the high prices faced by consumers,” FAO said.

Based on current conditions, the situation does “not augur well for a market-led supply response that could conceivably rein in further increases in food process for the 2022/23 season and possibly the next,” the report said.

__

Follow AP’s coverage of the war in Ukraine at https://apnews.com/hub/russia-ukraine.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

deadly heat wave last summer...

Associated Press

After a deadly heat wave last summer, metro Phoenix is changing tactics

Fresh memories of the deadly heat wave last summer have led Arizona authorities to launch new tactics ahead of summer 2024.

21 hours ago

A Yuma man has been arrested for allegedly starting a wildfire in a national wildlife preserve near...

Associated Press

Man accused of starting wildfire in national wildlife preserve in Yuma

A Yuma man has been arrested for allegedly starting a wildfire in a national wildlife preserve near the California border.

2 days ago

Colorado River settlement center of new Navajo Nation push...

Associated Press

Tribes say their future is at stake as they push for Congress to consider Colorado River settlement

Navajo officials are celebrating the signing of legislation outlining a proposed Colorado River settlement that would ensure water rights.

4 days ago

Arizona doctors California abortions...

Associated Press

Arizona doctors can come to California to perform abortions under new law signed by Gov. Newsom

Arizona doctors can temporarily come to California to perform abortions for their patients under a new law signed by Gov. Gavin Newsom.

5 days ago

Father convicted of first-degree murder in northern Arizona...

Associated Press

Arizona man convicted of first-degree murder in starvation death of 6-year-old son

A northern Arizona father was convicted of first-degree murder Thursday in the 2020 starvation death of his 6-year-old son.

5 days ago

Former President Donald Trump sits in a courtroom next to his lawyer Todd Blanche before the start ...

Associated Press

Trump hush money trial enters new phase after defense rests without testimony from former president

Donald Trump's hush money trial is now closer to the moment when the jury will begin deciding the former president's fate.

7 days ago

Sponsored Articles

...

Collins Comfort Masters

Here’s how to be worry-free when your A/C goes out in the middle of summer

PHOENIX -- As Arizona approaches another hot summer, Phoenix residents are likely to spend more time indoors.

...

COLLINS COMFORT MASTERS

Here are 5 things Arizona residents need to know about their HVAC system

It's warming back up in the Valley, which means it's time to think about your air conditioning system's preparedness for summer.

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Double whammy: Both farmers and consumers hit by high prices