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HomeLatest NewsOpinion | Power: The Sword of Damocles

Opinion | Power: The Sword of Damocles

Date: March 21, 2023 Time: 17:16:42

This downward trend in world food prices was greatly aided by the crucial black sea dealsigned on July 22, 2022. This agreement helped unlock Ukrainian grain exports, while lowering gas prices calm the rise in fertilizer pricesthat had risen more sharply than the prices of agricultural products, becoming a aggravating the crisis.The fall in prices has meant a relief for emerging countriesparticularly those that strictly depend on Russia and Ukraineas Egyptwhich imports 70% of its cereals from these two countries, Turkey (75%) Tunisia (52%). This price rise, which began in 2021, raised fears for the food security of the poorest countries, whose public finances had seriously deteriorated due to the management of the epidemic. That is, the war in Ukraine It only aggravated a situation already tense. But the balance remains fragile. Food inflation continues to persist despite the healthy drop, as grain prices remain well above their 2021 levelsas the prices of wheatwhich they place 34% above, and the corn, by 29%. For their part, rice prices have reached their highest level since March 2021, but are still far from their all-time highs. The upward trend began in 2022, serving as a substitute for other cereals whose prices remain high. He rice It is a food consumed by more than half of the world’s population, mainly in Asia, a region that until now has been protected from rising food prices due to its great dependence on this cereal. And it is that, unlike wheat and other cereals, rice production is consumed locally and does not enter international markets. And, within Asia, it must be taken into account that Porcelainscam 1.4 billion inhabitants (i.e. 18.5% of the world’s population and only 12% of arable land), need a food safety policy. But this could threaten world security: the country has accumulated large reserves of agricultural products (its wheat stocks represent 54% of world stocks, rice 58%, soybean 32% and corn 68%) during the pandemic by fear of scarcitywhat i contribute to world prices of these highest cereals. The accumulation of large reserves by China does not improve world food security, but reduces the available supply, unbalancing the market and, therefore, making it sensitive to external shocks. On the other hand, we find that the appearance of bilateral trade agreements between China and major producers of raw materials since, since it is not produced within a framework of global coordination, it runs the risk of accentuate volatility agricultural prices, threatening the social and political stability of poor countries. Although falling food prices are beneficial, the market equilibrium for agricultural products remains fragile. And the prospects remain uncertain as they depend on a wide variety of factors, such as weather conditions, natural gas prices, the policy of food protectionism and fertilizer prices. However, the main threat to global food security could be Chinese food policy.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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