Food prices have gone up this year due to heat waves, poor harvests, and supply chain disruptions. A number of countries around the world have imposed export bans in order to protect their national food supply, which has added to the problem.
Food products from wheat and beef to palm oil have been affected by export bans. The scenario has been even more complicated because of supply chain disruptions and environmental factors.
There are a lot of problems, none of which would resolve themselves in a hurry, according to the chief economist at a UK-based multi-asset brokerage firm.
The world has suffered from agricultural commodity price shocks before. In the aftermath of the global financial crisis, countries like Ukraine and other major grain exporters banned supplies to defend domestic prices. India and Vietnam, the biggest suppliers of rice, restricted imports.
In the same situation, Ukraine has halted wheat exports again because of war, which will likely disrupt the planting of the new crop this year. Indonesia has banned the export of palm oil, and Argentina has blocked certain beef cuts.
The cost-of-living crisis is going to get worse because of these bans, after a series of sanctions on Russian energy exports.
We are at a point where prices are high, and they don't seem to be going down any time soon. As long as prices are high, there is a temptation for some countries to keep prices low, according to a researcher at the International Food Policy Research Institute.
More food export bans may be on the horizon, as other exporting countries follow suit and implement their own bans, according to experts at the International Food Policy Research Institute.
Key agricultural exports have been restricted in the last year and what it means for food prices. Insider was told what commodities could be banned next.
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