There is ample grain to feed the world, but the question is at what price (Miller Magazine)
- Impact Area
Miller Magazine, one of the key publications on grain milling and pulses processing industry in the world, featured Joseph Glauber, IFPRI senior research fellow, in an interview discussing high food prices and how the war in Ukraine affects exports of grain, food and fertilizers globally.
Both Ukraine and Russia are among the most important producers of agricultural commodities, are net exporters of agricultural products, and are leading suppliers of foodstuffs and fertilizers to global markets. In the interview, Glauber says, “The partial re-opening of the Black Sea ports for Ukraine grain exports has helped contribute to lower grain prices in global markets and increased prices for Ukraine producers. Yet, while helpful, trade remains far below a year ago levels. We saw how with Russia’s temporary suspension of the agreement in early November caused wheat prices to spike 6% or more.” Glauber worries that high fertilizer prices are having a negative impact on grower margins. “We have already seen how higher fertilizer prices have affected planting decisions. In the US this past spring, for example, producers planted more soybeans and less corn and wheat.” “There is ample grain to feed the world, but the question is at what price. Even as prices fall back to pre-war levels, they remain elevated.” “The strength of the dollar means that many poor net food-importing countries are paying very high prices for imports. This puts additional pressures on households, particularly poorer households in countries with limited safety nets,” he adds.
Glauber also discusses how the global food crises are linked to the global grain markets, the environment and climate change, and how some solutions might be found in digitalization and blockchain technology.