Food Security Update | World Bank Response to Rising Food Insecurity

Domestic food price inflation remains high in many low- and middle-income countries. Inflation higher than 5% is experienced in 59.1% of low-income countries (no change since the last update on May 30, 2024), 63% of lower-middle-income countries (no change), 36% of upper-middle-income countries (5.0 percentage points higher), and 10.9 percent of high-income countries (3.6 percentage points lower). In real terms, food price inflation exceeded overall inflation in 46.7% of the 167 countries where data is available.

Since the last update on May 30, 2024, the agricultural, cereal, and export price indices closed 8%, 10%, and 9% lower, respectively. A fall in cocoa (16%) and cotton (11%) prices drove the decrease in the export price index. Maize and wheat prices closed 8% and 23% lower, respectively, and rice closed at the same level. Maize prices are 28% lower, wheat prices 8% higher, and rice prices 18% higher on a year-on-year basis. Maize prices are 10% higher, wheat prices 5% lower, and rice prices 46% higher than in January 2020. (See “pink sheet” data for agricultural commodity and food commodity prices indices, updated monthly.)

In the latest Hunger Hotspots report covering the period between June and October 2024, the Food and Agriculture Organization (FAO) and World Food Programme (WFP) have issued a joint warning about the escalating food insecurity crisis in 18 critical hotspots comprising 17 countries or territories and one regional cluster. Mali, the Palestinian Territories, South Sudan, and Sudan are of the highest concern, and Haiti is newly added because of escalating violence by non-state armed groups. These areas are experiencing famine or are at severe risk, requiring urgent action to prevent catastrophic conditions. The report emphasizes the critical need for expanded humanitarian assistance in all 18 hotspots to protect livelihoods and increase access to food. Early intervention is crucial to mitigate food gaps and prevent further deterioration into famine conditions. The international community is urged to invest in integrated solutions that address the multifaceted causes of food insecurity, ensuring sustainable support beyond emergency responses to build resilience and stability in affected regions.

A new report from the Integrated Food Security Phase Classification (IPC) confirms that the food insecurity situation in Gaza continues to be catastrophic. High risk of famine will persist across the whole Gaza Strip as long as conflict continues, and humanitarian access is restricted. The report finds that 96% of the population, equivalent to 2.15 million people, face acute food insecurity (IPC Phase 3 or above), with 495,000 individuals experiencing catastrophic levels of food insecurity (IPC Phase 5) through September 2024. The gravity of the situation is a reminder of the urgent need to make sure food and other supplies reach all people in Gaza. Only cessation of hostilities in conjunction with sustained humanitarian access to the entire Gaza Strip can reduce the risk of famine occurring in the Gaza Strip, the report argues.

The AMIS Market Monitor for June 2024 highlights the initial forecasts for global cereal production released in May, underscoring significant uncertainty because planting of many crops is pending in the Northern hemisphere. The report scrutinizes the validity of early projections for 2024/25 wheat production, now challenged by adverse weather conditions such as drought and prolonged frost in key Russian regions that affect yield expectations. Consequently, world wheat export prices rose in May, driven by mounting concerns over production constraints, particularly in the Black Sea region. Given wheat's critical role as a staple food with limited substitutes, importing nations are closely monitoring developments for potential impacts on food security.

Following Russia’s invasion of Ukraine, trade-related policies imposed by countries have surged. The global food crisis has been partially made worse by the growing number of food and fertilizer trade restrictions put in place by countries with a goal of increasing domestic supply and reducing prices. As of June 26, 2024, 16 countries have implemented 22 food export bans, and 8 have implemented 15 export-limiting measures.

World Bank Action

Our food and nutrition security portfolio now spans across 90 countries. It includes both short term interventions such as expanding social protection, also longer-term resilience such as boosting productivity and climate-smart agriculture. The Bank's intervention is expected to benefit 296 million people. Some examples include:

In May 2022, the World Bank Group and the G7 Presidency co-convened the Global Alliance for Food Security, which aims to catalyze an immediate and concerted response to the unfolding global hunger crisis. The Alliance has developed the publicly accessible Global Food and Nutrition Security Dashboard, which provides timely information for global and local decision-makers to help improve coordination of the policy and financial response to the food crisis.

The heads of the FAO, IMF, World Bank Group, WFP, and WTO released a Third Joint Statement on February 8, 2023. The statement calls to prevent a worsening of the food and nutrition security crisis, further urgent actions are required to (i) rescue hunger hotspots, (ii) facilitate trade, improve the functioning of markets, and enhance the role of the private sector, and (iii) reform and repurpose harmful subsidies with careful targeting and efficiency. Countries should balance short-term urgent interventions with longer-term resilience efforts as they respond to the crisis.

Last Updated: Jul 01, 2024