In 2022, the world food crisis has emerged and the world is in a weird contrast. While the latest global food crisis has thrust 345 million people into food insecurity, the US food giants are dominating global transitions. The US showed less interest to deal with the food crisis ignited from conflict in Ukraine while the US is framing itself as a guardian of global food security.
Indeed the war in Ukraine has created lots of problems especially for the underdeveloped nations in the region and Africa. The problem has hit the so-called developing nations hard. It is also topical for Afghanistan.
World food crisis brewed long before Ukraine war
The world food crisis has been brewing for a long time, while the Ukrainian conflict, which the Russian see as unleashed by the West, has allowed the US and its allies to take almost all the grain produced by Ukraine, which is a major food manufacturer.
Many argue that today’s situation at the food market is not the result of this year’s events, but at least a two-year trend. According to stock market data, in 2021 wheat prices soared by 25% (the West plays with the thesis of a 70% increase, but this is false). Biannual corn price rise has been 162%, rapeseed – 175%. In February-March 2022, quotations of the key agricultural goods were subject to severe volatility against the background of fear of curtailed deliveries. Last years’ crises at the agricultural market first and foremost are linked to the failures and accumulated systemic mistakes in macroeconomics, including finance and trade, energy, including climate, and food policies by the West.
Russia eyed safe trade corridors with Ukraine
Back in March 2022, Russia proposed to establish safe trade corridors from Ukraine for food export to the countries in need. Ukraine mined its seaports as per West’s order, and thus blocked ways out of its territorial waters to dozens of vessels stuck in its ports. Kiev refused to conduct demining. Despite Russia’s and Turkey’s efforts, an agreement on the export of grain was reached only by the end of July 2022. The sides agreed that Russian and Ukrainian grain, as well as Russian-produced fertilizers would be exported, first and foremost to those countries that need them most.
Needy countries did not benefit from grain shipment
It turned out however that the food did not in the least go to those countries that were experiencing the food crisis mentioned by the initiators of the agreement. Only 3% of exported grain left for the needy countries, while well-off Europe received 30%. In the course of the talk with UN Secretary General Antonio Gutierrez Russian President Vladimir Putin called upon to pay attention to the geography of deliveries in order to enhance the share of the most needed countries, first and foremost African ones.
Russia vessels barred from entering Mediterranean
The Russia-UN agreement lifted the barriers to Moscow’s grain and fertilizer export, which could alleviate world food conditions. However, this part of the agreement has never been fulfilled. Russian vessels are still barred from entering Mediterranean and other EU ports, while foreign vessels cannot take these goods in Russian ports. Nearly 300 thousand tonnes of the needy and efficient Russian-made potash fertilizers are arrested in the EU ports. Russia has suggested that Western countries should transfer these Russian fertilizers to the developing nations. However the West has refused to do so.
Instead of feeding the needy the food goes to West
At the end, we see the result, i.e. the West profiting from the Ukraine conflict as much as possible. Instead of feeding the needy the food goes to the US and its allies. At the same time the West is constantly blaming Russia as allegedly the only reason for the upcoming food crisis, which is refuted by the above-mentioned facts. In reality we see yet another outrageous cynical policy by the West which aims to fix its problems in the economy at the expense of others. In that context the fraud within the grain deal matches the freeze, or rather the theft, by the US of Afghan monetary reserves.
Countries warned to buy grain from Russia
On July 28, when the US commented on the grain deal signed by Ukraine, Russia, Turkey and the UN personnel, US State Department Spokesperson Ned Price urged Russia to implement the deal and lift the blockade against Ukraine quickly. But he did not mention about the US-led sanction on Russian exports which indeed affected many consumer countries. Furthermore, in mid-May, the US warned 14 countries, mostly in drought-stricken Africa not to buy wheat from Russia, while most of the Ukraine grain shipments were transferred to the West, ignoring these countries’ plight. But, India, close allies to the US, has shown readiness to resuming purchases of Russian wheat with the aim of processing and re-exporting it. India was purchasing wheat from Ukraine, Russia and Australia but suddenly stopped importing grain. India said the decision to halt the purchases of Russia’s grain has nothing to do with the conflict in Ukraine.
One thing is very clear that no matter how the situation in Ukraine may evolve, a fundamental reform is needed in the food industry and how it should be produced and prices must be set. The world is experiencing an unjust food crisis due to multiple reasons and this has to be changed in nutshell.
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