Page 117 - Finanancial Management_2022

Ukraine invasion

squeezes global food

supply chain

he war in Ukraine is likely to have
long-lasting impacts on world food
prices, exacerbating inflationary
pressures in a global food supply
T chain already battered by the
COVID-19 pandemic, according to the Food and
Agriculture Organization (FAO) of the United
Nations. In early March, the FAO predicted that
international food and feed prices could jump
by more than 22% in 2022. This comes on the
heels of a 28% jump in global food prices in
2021. The Organisation for Economic
Co-operation and Development estimated in
March that the conflict would reduce global
GDP growth by 1.08 percentage points and raise
global inflation by 2.47 percentage points.

PHOTO BY ANDRESSA ANHOLETE/ BLOOMBERG VIA GETTY IMAGES Soybeans are harvested near Brasília,
Brazil. Farmers in Brazil are having trouble
getting fertiliser for the next soybean crop
after Russia’s invasion of Ukraine. Russia
is a top supplier of fertiliser.