Despite the recovery of grain exports from Ukraine, the world is moving towards a grain deficit, writes Reuters.
Bad weather in key agricultural regions from the U.S. to France to China is causing crop harvests to shrink and stocks to dwindle, raising the risk of famine in some of the worldʼs poorest countries.
Importers, food producers and livestock producers had hoped that crop availability would improve after Ukraine resumed supplies from Black Sea ports this summer, while the U.S farmers awaited a bumper harvest. But the United States, the worldʼs largest corn producer, is now expected to harvest its smallest crop in three years. The drought has also damaged crops in Europe and threatens the upcoming planting season in South America.
According to the International Grains Council, the world will have fewer days of corn stocks than in 2012, when the last global food crisis sparked unrest.
Ukrainian exports of corn and wheat increased after the unblocking of the ports, but the situation is also shaky, because it is not yet known how long the war will last. In addition, the country at war will harvest less than last year.
The World Bank has committed $30 billion to help offset food shortages exacerbated by the war, and U.S. President Joe Biden last week announced nearly $3 billion in additional funding to support food security.