FAO calls for less “disruption” in international trade to reduce the impact of high food prices.
The UN Food and Agriculture Organization (FAO) has estimated that 673 million people will suffer from hunger in 2024, which is 15 million fewer than the previous year and 22 million fewer than in 2022. In other words, the percentage of the global population suffering from hunger has decreased from 8.7% to 8.2% in just two years.
These are some of the conclusions reached by the international organization in its latest report, published this Monday and entitled “The State of Food Security and Nutrition in the World: Combating High Food Price Inflation for Food Security and Nutrition.”
In it, the FAO called for less “disruption” in international trade, greater transparency, and continued investment in resilient agri-food systems to respond to the impacts of high food prices and prevent future episodes of inflation.
Regarding the data, the international organization detailed that the reduction in the number of people experiencing hunger is due to a notable improvement in Southeast Asia, South Asia, and South America. However, hunger continues to rise in most subregions of Africa and West Asia. In fact, although the global number of “undernourished” people is expected to decline, it is projected that 512 million people will still face hunger in 2030, almost 60% of whom will be in Africa.
On the other hand, the FAO has mentioned that although the number of people worldwide who could not afford a healthy diet decreased from 2.76 billion in 2019 to 2.6 billion in 2024, the figure increased in Africa, in low-income countries, and in lower-middle-income countries over the same period. A similar situation has occurred regarding moderate or severe food insecurity, which has decreased in recent years to 28% in 2024, but continues to increase in Africa.
THE AVERAGE COST OF A HEALTHY DIET: $4.46
Among other details, the international organization discussed how the COVID-19 pandemic and the war in Ukraine caused sharp increases in global food prices during 2021 and 2022, which were exacerbated by rising energy costs. Food prices continued to rise in 2023 and 2024, raising the average cost of a healthy diet globally to $4.46 (€3.83) per person per day at purchasing power parity.
Furthermore, the report indicated that economic policy during the pandemic interacted with supply constraints, creating a unique inflationary environment. At the same time, wage recovery was delayed and uneven across countries. Furthermore, low-income economies experienced much higher rates of food price inflation than those recorded globally.
Beyond this, it noted that high food price inflation can worsen food security, especially in low-income countries, as well as child malnutrition. It also emphasized that structural and gender inequalities amplify the impact of food price inflation, particularly in countries with high income inequality.
LESS “DISTURBANCES” IN INTERNATIONAL TRADE
Thus, the FAO has called for ensuring market integration and reducing the frequency and severity of price fluctuations. To achieve this, it has emphasized that a long-term strategy should focus on reducing trade disruptions while increasing strategic food reserves and market transparency, and investing in trade infrastructure.
At the same time, it has called for aligning fiscal and monetary policies to stabilize markets. Among other things, it has advocated developing a “credible and transparent” monetary policy, “strategic public spending that includes investments to support food security and nutrition,” and “realistic” fiscal planning. In this regard, it has also defended the need to protect vulnerable populations with well-designed fiscal responses that are “carefully” monitored to ensure that the benefits reach consumers, among other details.
On the other hand, the FAO has encouraged strengthening data and information flows in the agricultural market, as strong information systems in this area are “key” to managing price volatility and preventing speculation. “Data transparency and timeliness facilitate more effective decision-making and help small farmers and consumers adapt to changing market conditions,” it emphasized.
Finally, it called for sustained investment in agriculture, research and development, and infrastructure to reduce the likelihood of future episodes of high food prices.
