- The world has experienced two major global food crises over the last five decades, one in 1972 and another in 2008. Similarities between these two global food crises are astounding, where both the supply and demand sides played roles in driving up food prices. High fuel prices, declining agricultural productivity and global grain stocks, as well as shifts in food demand were some common factors that led to years of high food prices, affecting many globally. During the 2008 global food crisis, additional factors such as biofuel policies, importing and exporting countries’ events and policies as well as excessive commodities speculation were noted as additional factors that led to price spikes.
- Currently, the world is once again facing increasing food prices with FAO global food price index recorded the highest increase in early 2022 compared to pre-pandemic. The conflict between Russia and Ukraine has caused disruptions in global food markets, as the two countries collectively contribute 12% of total calories traded globally. High fuel prices, high fertiliser and commodity prices, reduced agricultural production due to climate change, and shortages of agricultural workers due to pandemic impacts have further caused food price spikes.
- Current global inflation rates have been climbing to levels similar to the year 2008, causing economic and social unrest. Poverty rates are expected to increase, and food insecurity will be more profound, especially for the urban poor. Food baskets of poor households will be less diversified, which may lead to higher prevalence of malnutrition.
- Malaysia, as a country relying on imports for more than half of its food availability, is also affected by current food price increases. Malaysia’s overall food inflation rate went up 7.2% in August 2022, compared to the same month in 2021, and food categories such as ‘Meat’, ‘Vegetables’, and ‘Food Away from Home’ experienced some of the highest price increases of 9.9%, 8.9%, and 8.4% respectively.
- The right balance between both short-term and long-term solutions are needed in facing the looming global food crisis. Short-term solution solutions may be in the form of producers’ subsidies, cash aid and price control, all of which have been implemented by the government. Long-term solutions include ramping up farming digitalisation and agricultural research and development(R&D), in order to achieve food systems r
