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June 9, 2022

Anna Murray 

The Food and Agriculture Organization of the United Nations (FAO) reported on June 9th that the global food import bill is on track to set a new record of US$1.8 trillion this year, with rising prices and transportation costs accounting for the majority of the expected increase rather than quantity.

According to the newly released Food Outlook report, the global food import bill will rise by $51 billion beginning in 2021, with $49 billion reflecting higher prices. This year, LDCs are expected to reduce their food import bill by 5%, while Sub-Saharan Africa and the group of Net Food-Importing Developing Countries are expected to increase total costs despite lower import volumes.

According to FAO economist Upali Galketi Aratchilage, in light of rising input prices such as fertilizer and fuel, weather concerns, and increased market uncertainties caused by the Ukraine conflict, FAO's most recent forecasts indicate that food markets will likely tighten and food import bills will reach a new high.