World food prices are breaking records

Both Russia and Ukraine are important global exporters of food, especially cereals. The conflict causes a limited possibility of carrying out spring crops, not to mention their international transport. This will result in a reduction in supply, and thus a further increase in prices. And the food price index provided by the FAO (Food and Agriculture Organization) is already breaking all-time records. In the case of food-importing regions, such as Egypt, for example, there is a risk of social unrest and another wave of immigration to Europe.

"Russia and Ukraine exported their agricultural products to countries that are inevitably hot spots – the Middle East and North Africa. There, rising prices may translate into greater potential for social unrest, and we remember what happened 11 years ago. The main reasons for the Arab Spring were rising food prices or a smaller supply of food products. This is probably the greatest geopolitical risk that is present at this point," Michał Dybuła, chief economist of BNP Paribas Bank Polska, noted.

According to FAO data, in March the global food price index rose to 159.3 points, i.e. it was 33.6 percent higher than the year before and by 12.6 percent higher than in February this year. This is a record in over 30 years of history of keeping such statistics.

(Newseria)