A shocking new report via the Food and Agriculture Organization of the United Nations (FAO) revealed the world food import bill jumped to nearly $2 trillion in 2022 amid soaring inflation due to several factors, including currencies depreciating against the US dollar, the war in Ukraine, and La Nina-related climate change.
FAO’s Food Outlook expects the tab for imports of wheat, rice, maize, vegetable oils, and all other farm goods will jump to an all-time high and about 10% increase over the record level of 2021, although the agency expects demand destruction in response to elevated food prices and depreciating currencies against the US dollar.
Food-import bills are skyrocketing for developing countries, with most already in insurmountable debt. Many of these countries are quickly burning through dollar stockpiles at the fastest pace in two decades to defend their currencies against a rallying dollar.
Falling emerging market currencies means the purchasing power of importing has declined.