00:00Global food prices rose for a second straight month in March, driven mainly by higher energy costs linked to the
00:07conflict in the Middle East.
00:09Thus, according to the latest food price index from the UN's Food and Agriculture Organization,
00:14the index, which tracks a basket of global traded food community, averaged 128.5% in March, thus up 2
00:21.4% from February and about 1% higher than a year ago.
00:25And the reason is simple. This is directly linked to the oil prices that have been going up.
00:30So both oilseeds and sugar for ethanol production are related to the energy markets.
00:35And that's why we are observing an increase.
00:37On the food commodities, the cereals, especially wheat, maize, and so on, we are not observing a significant increase.
00:42And the reason is because still the transmission of what is happening in the Strait of Hormuz on input sites
00:48is not yet transmitted into the production of all supplies.
00:51And we have good supplies of food at this point and good stocks of food at this point.
00:55According to the organization, countries already burdened by debt are most at risk, as rising costs could force them to
01:02buy less food or lower quality products.
01:06This, they said, third world countries will have to compete with rich countries in buying the same products.
01:12Countries that are most impacted by any increase in price of food will be the net food importing countries.
01:18How much they will impact it depends also on their income.
01:20Gulf countries, for example, are rich countries.
01:22So the prices could increase.
01:24They will be able to buy the same.
01:25They will pay a higher price.
01:27But countries that have debt-to-stress, like many countries in Africa and some in South Asia, won't have that
01:31capacity.
01:32So the decision, if prices increase or the food import bill, is basically to buy less or to buy lower
01:37quality of commodities so that they can continue to have the food that they need.
01:41So, yes, the most vulnerable will be affected.
01:43Right now, the impact also goes into the Gulf countries because they cannot import food.
01:48And it also goes into Iran, where it's a self-sufficient country mostly.
01:5220% is imported.
01:54But prices were already going up and now they have exacerbated.
01:57So those two regions of the world will be facing challenges immediately, but to the whole world, it will be
02:02the most vulnerable food importing countries, net food importing countries that will be impacted.
02:06To build resilience, the board is now calling for a tool track response in the short term securing alternative trade
02:12routes, protecting humanitarian supply lands and reinforcing social safety nets.
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