The global food import bill is expected to rise by 2.2% year-on-year, surpassing $2 trillion in 2024, according to the latest report from the United Nations Food and Agriculture Organization (FAO). This increase is primarily attributed to rising costs in key commodities such as cocoa, coffee, tea, fruits, and vegetables, which are experiencing significant price hikes due to a combination of adverse weather conditions and logistical challenges.
One of the most notable surges is in the import expenditures for cocoa, coffee, and tea, which are forecast to rise by 22.9%. The FAO points out that this dramatic increase is mainly driven by unfavorable weather events affecting the supply of these commodities, as well as ongoing issues with global supply chains. Cocoa prices have almost quadrupled, while coffee prices have doubled, and tea has risen by 15% above its usual price. These increases are especially significant for countries like Burundi, Ethiopia, Sri Lanka, and the Ivory Coast, which rely heavily on the export of these products to sustain their economies.
The FAO’s report also highlights the disparity in how different income groups will be affected by the rise in food import costs. High-income countries, which account for two-thirds of the global food import bill, are expected to face a 4.4% increase in 2024. In contrast, food import bills for upper-middle-income, lower-middle-income, and low-income countries are projected to contract, which may indicate that these nations are either reducing their food imports or experiencing challenges in affording the rising costs.
The report further underscores the ongoing risks to global food security, pointing to the impact of extreme weather events, geopolitical tensions, and shifting policies that continue to disrupt food supply chains and trade flows. Despite these challenges, the FAO offers some positive news on the global crop front. While wheat and coarse grain production are expected to decline, rice production is projected to reach an all-time high, providing some relief to global food supplies. Additionally, global fisheries output is forecast to increase by 2.2%, driven by the expansion of aquaculture.
In summary, while the global food import bill is set to soar to over $2 trillion in 2024, the FAO’s report highlights both the challenges posed by rising commodity prices and supply chain disruptions, as well as some hopeful developments in rice and fisheries production.
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