The Food and Agricultural Organization of the United Nations (FAO) has stated that fertiliser, fuel and other agricultural products would cause the global food import bill to hit a new record of $1.8 trillion in 2022.
In the agency’s most recent food outlook report obtained by Investors King, it was estimated that the world’s food import bill will set a new record this year, breaking an all-time established last year by about 3% – but the bulk of the expected increase will come from rising pricing and transportation expenses rather than volume.
“Countries are expected to spend a staggering $1.8 trillion importing food they need this year; this would be a new world record but worryingly, it’s going to buy them less food, not more,” FAO said.
Higher fixed costs for farmers of so-called “agricultural inputs” like fertilizer and fuel, according to the report, are likely to be to blame for this year’s “bigger-than-ever global food import bill.”
Accordingly, FAO explained that all but $2 billion of the additional $51 billion that will be spent on edible imports this year is due to increased pricing.
It said animal fats and vegetable oils would be the single biggest contributor to higher import bills, adding that cereals would also contribute to the import bills of developed countries.
“Developing countries, as a whole, are reducing imports of cereals, oilseeds and meat, which reflects their incapacity to cover the increase in prices,” FAO said.
Commenting on the report, Upali Aratchilage, FAO economist, said: “In view of the soaring input prices, concerns about the weather, and increased market uncertainties stemming from the war in Ukraine, FAO’s latest forecasts point to a likely tightening of food markets and food import bills reaching a new record high.”
Among the most vulnerable nations, it was estimated that least developed countries would have little option but to spend five percent less importing food this year.
Also, sub-Saharan African countries and other nations that buy more food than they export are likely to face an increase in costs, for which they’ll get lower amounts of essential foodstuff.
FAO warned that “these are alarming signs from a food security perspective, indicating that importers will find it difficult to finance rising international costs.”
