Russia: The rise in the cost of food will turn into a food crisis

The year 2021 has brought a host of weather challenges and a significant increase in food prices due to various factors including energy price hikes, national economies struggling from the pandemic, and adverse weather conditions impacting crop production. The United Nations' Food and Agriculture Organization revised its global grain production forecast down by 29.3 million tons due to droughts in several countries, leading to a 3.1% increase in world average crop prices in August alone. The situation is expected to worsen, with food prices already at a 60-year high and experts warning of a potential food crisis due to rising fertilizer prices and a predicted decrease in sown areas for a specific crop in 2022. Additionally, high gas prices are causing a domino effect, affecting the prices of corn, feed, and meat. Western and Russian analysts agree that farmers are likely to face profit challenges, particularly in the sale of grain, milk, and meat, as manufacturing costs continue to rise.