Multiple factors have led to the rise of grain prices in the Middle East, and the main importing countries of the Middle East have laid out food security
2022-03-21 14:17:57Source: Xinhuanet
Xinhua News Agency reporter Li Rui
Recently, multiple factors have led to a significant increase in food prices in many grain importing countries in the Middle East. The governments of many countries have introduced a package of measures such as increasing food subsidies and reducing food surcharges. They have also accelerated the layout by diversifying import sources, increasing grain planting and developing modern technologies. food security.
Multiple factors lead to soaring food prices
In many Middle Eastern countries, the prices of wheat, corn, cereals and meat have increased significantly recently due to the combined effects of the Russian-Ukrainian conflict, high inflation rate, the new crown epidemic and other factors.
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Russia is the world‘s leading wheat producer and exporter. According to data from the US Department of Agriculture, Ukraine and Russia together account for nearly 30% of global wheat exports, making them an important “granary” in the world. The supply chain disruption caused by the conflict between Russia and Ukraine has tightened market supply and triggered sharp fluctuations in global food prices.
80% of Egypt’s food imports come from Russia and Ukraine. Atiyah Hamad, head of the baking department of the Cairo Chamber of Commerce, told Xinhua that the price of flour in the country soared from an average of 9,000 Egyptian pounds (1 Egyptian pound about US$0.06) per ton in February to 11,000 Egyptian pounds in March. pound.
Nearly 40% of Turkey’s sunflower oil is imported, mainly from Russia and Ukraine. Recently, the price of sunflower oil in the country has risen by more than 30%.
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At the same time, Turkey’s wheat import costs have continued to increase in the past two years. Official data from Turkey shows that the average price of a ton of wheat imported in 2020 is about US$230; in 2021, due to the impact of the epidemic, the import price will rise to US$297; this year, due to the country’s high inflation rate and the conflict between Russia and Ukraine, this price has been Soared to $346.
food security issues
The continued rise in food prices is gradually affecting the food security of some Middle Eastern countries, especially Lebanon and Yemen, whose economies are already in trouble.
Lebanese wheat importer Ahmed Hutaet told Xinhua that Lebanon has been in deep financial crisis and severe foreign exchange shortages in recent years, and the conflict between Russia and Ukraine has further pushed up the price of imported food in the country. Lebanon may face a shortage of wheat as the country’s wheat imports are mainly from Ukraine.
As many as 31,000 people in Yemen are facing famine, according to data released by the United Nations World Food Programme in March. In the past three months, wheat imports from Ukraine accounted for 31 percent of Yemen’s wheat imports, but import prices were seven times higher than in 2015.
Treating both symptoms and root causes to ensure food security
At present, Egypt, Turkey and other countries have introduced a package of measures to help people cope with the rapidly rising food prices; at the same time, many governments are also actively deploying to fundamentally strengthen their own food security.
Egyptian Prime Minister Madbouli recently announced that the government will increase the number of food stalls sold with state subsidies and strengthen market price supervision. Egypt’s Ministry of Trade and Industry announced a three-month ban on the export of wheat, broad beans, lentils, pasta and various flours starting March 11. The Turkish government has also announced a reduction in value-added tax on basic food items, along with a substantial increase in the monthly minimum wage and pensions for retirees.
In the long run, some Middle Eastern food importing countries are seeking to enhance food security through multiple measures. Madbouli said Egypt is expanding into more wheat importing countries including the United States, Argentina, Canada and Paraguay.
In recent years, the Egyptian government has continued to encourage farmers to increase the area and production of grain by providing seed fertilizers, teaching planting techniques, and guaranteeing government purchase prices, with obvious results. Egyptian Minister of Agriculture Qusail said recently that Egypt’s wheat imports have dropped sharply from 12 million tons in previous years to about 5.5 million tons in 2021.
The UAE’s “Nation” reported that the country started the “Food Technology Valley” project last year, which aims to develop and use modern technology to increase food production. Although the area of land suitable for cultivation in the UAE is scarce, the value of agricultural output has grown rapidly in recent years with the help of vertical farming and hydroponics. The country plans to grow its agricultural output to $22 billion over the next three years.