People shop at a supermarket in Beirut, Lebanon, Monday July 15, 2022. In Lebanon, where endemic corruption and political deadlock have crippled the economy, the World Food Program is increasingly providing cash assistance to people to buy groceries, especially after the devastating aftermath of the 2020 port explosion that destroyed massive grain elevators. (AP Photo/Bilal Hussein)
Soki Wu’s food stall, tucked away in a mall food court in Singapore, is a crowd favorite for its fresh, juicy chicken rice, a national dish. But customers recently began complaining that his chicken didn’t taste as good as it used to.
Wu was forced to switch to frozen chicken after Malaysia last month banned the export of live broiler chickens, which are more affordable and better-tasting, to offset rising local prices. For Singapore, which sources a third of its poultry from Malaysia, the impact was immediate.
“It’s inevitable. Using frozen chicken has affected the flavor of the dish, but we have no choice,” Wu said.
As inflation soars around the world, politicians are looking for ways to keep food affordable as people increasingly protest the rising cost of living. One knee-jerk response has been food export bans aimed at protecting domestic prices and supplies as a growing number of governments in developing countries seek to show a nervous public that their needs are being met.
For business owners, the rising cost of cooking ingredients — from oil to chicken — has prompted them to raise prices, with people paying 10 to 20 percent more at Wu’s cookshop. For consumers, this means paying more for the same or inferior food, or cutting back on certain habits altogether.
In Lebanon, where endemic corruption and political gridlock have crippled the economy, the United Nations World Food Program is increasingly providing cash aid to people to buy groceries, particularly after a devastating 2020 port explosion that destroyed huge grain elevators. Constant power outages and high fuel prices for generators limit people’s shopping options because they cannot rely on freezers and refrigerators to store perishable goods.
Tracy Saliba, a single mother of two and a business owner in Beirut, said she used to spend about a quarter of her income on groceries. Today, half of her income goes to support her family as the currency weakens as prices soar.
“I don’t buy (groceries) like I used to,” Saliba said. “I only get the necessary items and groceries, like day by day.”
According to Capital Economics, food prices are up nearly 14 percent this year in emerging markets and more than 7 percent in advanced economies. In countries where people spend at least a third or more of their income on food, any sharp rise in prices can create a crisis.
Capital Economics forecasts that households in developed markets will spend an additional $7 billion per month on food and beverages this year and much of next year due to inflation.
Pain is felt unevenly, with 2.3 billion people experiencing severe or moderate hunger last year, according to a global report by the World Food Program and four other UN agencies.
Food prices accounted for about 60 percent of last year’s rise in inflation in the Middle East and North Africa, excluding the oil-producing Gulf countries. The situation is particularly dire in Sudan, where inflation is expected to hit 245 percent this year, and Iran, where chicken, egg and milk prices rose as much as 300 percent in May, sparking panic and isolated protests.
In Somalia, where 2.7 million people are unable to meet their daily food needs and children die of malnutrition, sugar is a source of energy. In May, 2.2 pounds of sugar cost the equivalent of 72 cents in the capital, Mogadishu. A month later it had skyrocketed to $1.28.
“In my house I serve tea (with sugar) three times a day, but from now on I have to drastically reduce it and only make it when guests come,” said Asli Abdulkadir, a Somali housewife and mother of four.
People there are expecting even higher costs after India announced it would limit sugar exports this year. Although this does not reduce India’s sugar exports compared to previous years, news of the restriction was enough to spark speculation from traders like Ahmed Farah in Mogadishu.
“Sugar costs are expected to rise as Somalia relies heavily on the white sugar exported from India and some brown sugar from Brazil,” he said.
Food export restrictions aimed at protecting domestic supplies and curbing inflation are one reason for rising food prices.
Food prices had been rising steadily around the world due to drought, supply chain problems and high energy and fertilizer costs. The Food and Agriculture Organization of the United Nations says the price of food commodities rose 23 percent last year.
Russia’s war in Ukraine pushed up wheat and cooking oil prices further and fueled a global food crisis. There was a breakthrough this week to create secure corridors for Black Sea shipments, but Ukrainian ports have been barred from exporting these essential goods for months and it will be some time before they reopen to vulnerable countries worldwide.
There are fears that the impact of all these factors will lead more countries to resort to food export bans that are being felt around the world. When Indonesia blocked palm oil exports for a month in April, palm oil prices rose by at least 200 percent.
Analysts say food export bans are short-sighted because they have a knock-on effect by driving up prices.
“I would say that about 80 percent of the bans that we see are ill-advised — sort of a gut reaction from certain politicians,” said David Laborde, who is credited with creating a food trade policy tracker at the International Research Institute on Food Policy.
“In the world where you’re the only one doing that, that can make sense,” he said. “But in a world where other countries can do that too, it’s actually anything but a good idea.”
Laborde said bans are “a very selfish policy … because you’re trying to get better by making things worse for others.”
The list of food export restrictions Laborde has been tracking since the COVID-19 pandemic is long and ever-changing. Examples of their impact include Kazakhstan’s restrictions on grain and oil prices in Uzbekistan, Tajikistan, Turkmenistan and Afghanistan; Cameroon’s Rice Export Restriction on Chad; and Tunisia’s fruit and vegetable restrictions on Libya.
In Singapore, Wu, 29, is hoping he can keep the family business going as the Singapore government approves Indonesia as a new chicken supplier.
“Things are getting better,” he said. “(That) will only make us more resilient.”
People shop at a busy popular market in Beirut, Lebanon, Monday, July 15, 2022. In Lebanon, where endemic corruption and political gridlock have crippled the economy, the World Food Program is increasingly offering people cash assistance to buy groceries, especially after the devastating 2020 port explosion that destroyed huge grain elevators. (AP Photo/Bilal Hussein)
People shop at a busy popular market in Beirut, Lebanon, Monday, July 15, 2022. In Lebanon, where endemic corruption and political gridlock have crippled the economy, the World Food Program is increasingly offering people cash assistance to buy groceries, especially after the devastating 2020 port explosion that destroyed huge grain elevators. (AP Photo/Bilal Hussein)
A worker rearranges fruit on display for sale at a shop in Beirut, Lebanon, Monday, July 15, 2022. In Lebanon, where endemic corruption and political deadlock have crippled the economy, the World Food Program is increasingly offering people cash assistance to buy groceries, particularly after the devastating 2020 port explosion that destroyed huge grain elevators. (AP Photo/Bilal Hussein)
FILE – Somalis fleeing drought zones receive charitable food donations from townspeople after arriving at a makeshift camp for displaced people on the outskirts of Mogadishu, Somalia, June 30, 2022. Food prices made up about 60% of last year’s rise in headline inflation in the Middle East and North Africa, excluding the oil-producing Gulf countries. In Somalia, where 2.7 million people are unable to meet their daily food needs and children are dying of hunger, sugar is a source of energy and fuel. In May, a kilogram of sugar in the capital Mogadishu cost the equivalent of around 72 cents. (AP Photo/Farah Abdi Warsameh, File)
Soki Wu, owner of Wu’s Katong Mei Wei Boneless Chicken Rice Stall, stands as a child of his stall at a food court at a shopping mall in Singapore, Malaysia on Friday, July 8, 2022. Soki Wu’s food stall, tucked away in a food court in a mall in Singapore, is a crowd favorite for its fresh, juicy chicken rice, the country’s national dish. Recently, customers complained that the chicken he served didn’t quite taste_ and wasn’t that good. That’s because Wu switched to using frozen chickens after Malaysia restricted exports of live chickens and the more affordable, tasty broiler to offset local price increases. For Singapore, which sources a third of its poultry from Malaysia, the impact was immediate. (AP photo)
FILE – Somalis who have fled drought zones carry their belongings as they arrive at a makeshift camp for displaced people on the outskirts of Mogadishu, Somalia, June 30, 2022. Food prices accounted for about 60% of last year’s rise in headline inflation in the Middle East and North Africa, excluding the oil-producing Gulf countries. In Somalia, where 2.7 million people are unable to meet their daily food needs and children are dying of hunger, sugar is a source of energy and fuel. In May, a kilogram of sugar in the capital Mogadishu cost the equivalent of around 72 cents. (AP Photo/Farah Abdi Warsameh, File)
