The driver for these increases is well noted over the past several months with compounding effects of rising input costs (fuel, feed, fertilizer on the farms), supply chain challenges, animal health issues, the Russian invasion of Ukraine and many other factors.
Globally, the rise in food costs is impacting low-income countries and families the most. The FAO Food Price Index reached its highest level since the series started in 1990. The continual upward movement of food prices is creating a new wave of food insecurity and hunger issues which will put pressure on achieving the United Nation’s Sustainable Development Goals aimed at ending world hunger by 2030. The culmination of so many factors leading to today’s high prices is, according to recent Deloitte Insights, likely to end up reversing years of progress in reducing global hunger. They note the upheaval in global food markets since 2020 serves as a warning that the world must be better prepared for global disruptions in the future, such as climate change.