Food insecurity is rising across the globe in light of Russia's invasion of Ukraine. The two countries collectively export approximately 25%Â of the world's wheat. Russia is also a significant contributor to the fertilizer industry, accounting for 13%Â of global output. These significant shocks coupled with the rising fuel prices will invariably affect food manufacturers' processing and transportation costs, which will make even the most basic food like br ead unaffordable. Governments, global food and trading companies, and the development sector must undertake urgent collaborations to minimize the impact of these compounding effects on the most vulnerable in our communities.
There are three critical steps these entities can take now to curb a food crisis, pulling from lessons from the COVID-19 pandemic as well as the 2007/2008 world food crises. Back then, commodity prices dramatically increased, leading to riots in many cities around the world while global food companies and commodity traders experienced historical revenue growth and profitability amid the hardship that affected the most vulnerable. This time, we must do better.
First, all country governments must share data on their food reserves for priority value chains as of February 2022 – mainly wheat, maize, rice, sugar, and soya -- and the expected output from the upcoming harvests. This data collection must go beyond the commodity exchanges and the agricultural agencies of specific, powerful countries but must include all nations, leveraging digital technology. This data should be collated and shared by an independent and trusted agency like the Food and Agriculture Organization (FAO) of the United Nations or International Food Policy Research Institute (IFPRI) so that collectively governments can understand where there are excesses and shortages and ensure more equitable distribution of food.
Nations can look to the COVAX initiative, co-led by Gavi, the Coalition for Epidemic Preparedness Innovations (CEPI), and WHO, that aimed to guarantee fair and equitable vaccine access for every country in the world. The early interventions of these agencies working together eased vaccines distribution to both higher-income and lower-income countries in 2021.
A similar collaboration is urgently needed in the international community to ensure the equitable sale and distribution of food commodities. According to IFPRI, wheat from Argentina, Australia, Canada, and Kazakhstan may fill the deficits created by the loss of production from Ukraine but at a higher cost due to longer shipping routes and increased transportation costs triggered by higher oil prices. However, this will require that governments partner on easing international trade, curtailing their nationalistic agendas for the greater global good.
Already we are learning of countries taking swift actions to limit exports and protect their markets. Argentina, for instance, has started limiting exports and instituted a mechanism to control domestic wheat prices and temper food inflation. Instead, countries like Argentina should be encouraged to partner with other wheat producers to share data and to redistribute their excess commodities to locations where they are needed the most.
Second, policy-makers must work with their farmer and trade organizations to enhance domestic productivity and food self-sufficiency and create an enabling environment for private sector investment in the agri-food sectors. Climate change, the lockdowns during the COVID-19 pandemic and the global shipping challenges have already heightened the food vulnerability of all countries and this has been further reinforced by the Russia-Ukraine crises. Egypt, the world's largest importer of wheat, has already indicated that it only has eight months of wheat reserves and is taking swift actions to actively manage domestic usage and enhance local production.
Countries must continue to invest in competitive local alternatives to globally-traded commodities to minimize their exposure to shocks. As an example, under the leadership of Dr. Akinwumi Adesina during his tenure as the Minister of Agriculture, Nigeria took the lead in developing cassava flour as an alternative to wheat for bread production. Similarly, investments in locally sourced alternative soil health inputs would also minimize the dependency on imported chemical fertilizers. These forms of strategic interventions need to be sustained through investments in local research and development and incentives that spur the commercialization of the innovations beyond the emergence of another crises.
Finally, big food businesses, global trading and shipping companies, wholesalers, and retailers must collaborate to ease the free flow of commodities and food, limiting hoarding and price gouging. Despite the temptation to maximize revenue and profit motives during what may appear as a strategic window of opportunity, it is imperative that all key stakeholders, including commodity exchanges and global industry associations, enforce clear rules of engagement and anti-consumer and competition activities. Global and local nonprofit organizations must also hold the private sector accountable for "doing well and doing good" during these uncertain times.
The Russia-Ukraine crisis has caused immense hardships for its citizens, disrupted the food ecosystems, and created ripple effects across the globe. Governments, commodity exchanges, farmers and industry associations, research institutes, big food businesses, commodity trading and shipping companies, wholesalers and retailers must act collaboratively and swiftly. Clearly, we may not be able to control the duration of this crises, but we can influence how the most vulnerable in our communities survive-based on our actions and inactions.
About the author
Ndidi Okonkwo Nwuneli is the co-founder of AACE Foods, Sahel Consulting Agriculture & Nutrition Ltd. She is the founder of LEAP Africa, Nourishing Africa and Changing Narratives Africa and has over 25 years of international development experience. She was the 2021-2022 McConnell Visiting Scholar at the Max Bell School of Public Policy at À¦°óSMÉçÇø.
