IFAD warns of potential global food crisis amid energy shock

The International Fund for Agricultural Development (IFAD) has warned of a potential global food crisis following an energy shock. According to IFAD President Alvaro Lario, global agricultural prices rose by 13% in the third quarter, and this trend is accelerating.

Rising hydrocarbon costs, linked to conflicts in the Middle East, have drastically increased the price of fertilizers and fuel since the spring. This has raised both production and transportation costs for the agricultural sector. Lario predicts that food inflation will heavily impact vulnerable populations within the next six to nine months.

Currently, approximately 260 million people face food insecurity globally. The rising cost of healthy foods, such as vegetables, legumes, and meat, is placing a significant burden on household budgets. Small-scale farmers, who provide one-third of the world's food and up to 70% in many developing nations, are particularly at risk due to the increased cost of essential inputs like fertilizer.