Thursday, May 19, 2022
  • Login
Upgrade
The Southern African Times
  • Home
  • Southern Africa
  • Global
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
  • Opinion
  • Sports
  • Lifestyle
    • Health
    • Culture
    • Food and Drink
    • Entertainment
  • SAT Jobs
No Result
View All Result
  • Home
  • Southern Africa
  • Global
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
  • Opinion
  • Sports
  • Lifestyle
    • Health
    • Culture
    • Food and Drink
    • Entertainment
  • SAT Jobs
No Result
View All Result
The Southern African Times
No Result
View All Result
Home Opinion

Food for thought: Europe’s cost of living crisis

by SAT Reporter
May 9, 2022
in Opinion
0
Food for thought: Europe’s cost of living crisis
0
VIEWS

Among the far-reaching global consequences of the conflict in Ukraine has emerged a widespread surge in the price of food across Europe. Spring may be approaching but the choice of whether to “heat or eat” is confronting many families living on the continent today.

As Ukraine has long been one of the world’s major breadbaskets, the impact of the conflict was at first extremely direct. Exports of wheat, which accounts for 9 percent of the global supply, barley – 10 percent, maize – 16 percent and sunflower oil – 42 percent, are all expected to be radically curtailed. Agriculture analysts AFK-Inform forecast that exports could plunge from 86 million tonnes exported in 2021 to 45.5 million this year.

The potential impact is clear. To compound the risk to already stretched supply chains is that Russia produces 21 percent of sunflower oil, 14 percent of wheat and 10 percent of barley. Deepening European sanctions or Russian export restrictions could escalate the risk of severe price hikes.

For now, many nations have ring-fenced essential Russian goods to, in the words of German Chancellor Olaf Scholz, ensure that sanctions do “not hurt us more than they do the Russians.”

German healthcare and chemical company Bauer takes a more pragmatic view and has advocated for continued trade of essentials, “Withholding essential health and agriculture products from civilian populations – like cancer or cardiovascular treatments, health products from pregnant women and children, as well as seeds to grow food – would only multiply the conflict’s ongoing toll on human life.”

Aside from the issues of sanctions and production, there is also continued disruption to global supply chains. Persistent COVID-19 concerns and the Russia-Ukraine conflict are among various contributing factors, which led the Royal Bank of Canada to reveal in a recent report that “global port congestion is worsening and becoming increasingly widespread.” One fifth of the entire globe’s shipping fleet is currently stuck in congestion at a trading port.

To combat constraints in global supply, it is natural to boost domestic production levels. Yet this presents its own challenges. In the United Kingdom, many farmers are wary of ramping up production owing to overheads which have grown significantly. The costs of nitrogen fertilizer have tripled. The price of feed has also risen.

Smoke rises after an explosion at sunset in Kyiv, Ukraine, April 28, 2022. /CFP

For farmers, they are faced with the prospect of passing on price rises to consumers while also taking a major risk in exposing themselves to a short squeeze should the price of fertilizer and feed drop before the harvest. Covering this position is something that governments across Europe should be doing to ensure domestic yields can rise once again.

Another component driving food shortages and a cost-of-living crisis is fuel prices, which have added significant costs to farmers for the production of food and its subsequent distribution and these prices are getting passed on directly to consumers while shortages have also driven prices higher.

Quick solutions to Europe’s energy crisis do not exist. The North Sea oil and gas will take time to come on stream, while nuclear power and some renewables will take nearly a decade to fill up for the shortfalls.

Exacerbating all of these issues is the specter of inflation and stagflation. When questioned on ITV, UK Prime Minister Boris Johnson conceded that the UK government “could do more” to ease the cost-of-living crisis but cautioned that mass government spending could feed an inflationary spiral. “If we have an inflationary spiral of the kind that could be triggered, you will see interest rates going up… an even bigger problem.”

While European Central Bank (ECB) Chief Economist Philip Lane told Bloomberg that he believed there was “still a lot of momentum in the recovery,” he cautioned that “inflation is very high and that does carry its own risk of momentum.”

The ECB is widely expected to raise interest rates to curb inflation just as Jay Powell, Chair of the U.S. Federal Reserve, raised U.S. interest rates by 0.5 percent for the first time in 22 years on May 4.

For Europe to protect food security and to prevent a deepening cost-of-living crisis, it must seek to pull the levers available to them. Investment in domestic energy sources and insulating farmers from market forces will help to stem inflation and return price stability. Beyond this, it has to be in the interest of all nations to restore global integration and resist the forces of sovereign separatism, which benefits no one.

Previous Post

African stock markets inch closer to integration

Next Post

Zimbabwean banks will not lend to stop the currency’s slide.

SAT Reporter

Related Posts

Towards an integrated and climate-resilient Africa and a just energy transition
Opinion

Towards an integrated and climate-resilient Africa and a just energy transition

by SAT Reporter
May 18, 2022
Why Nonalignment Is an Urgent Imperative for the Global South
Opinion

Why Nonalignment Is an Urgent Imperative for the Global South

by SAT Reporter
May 3, 2022
Urgency required: UN chief Guterres warns of ‘triple crisis’ on Africa tour
Opinion

Urgency required: UN chief Guterres warns of ‘triple crisis’ on Africa tour

by SAT Reporter
May 3, 2022
Can Europe live without Russian energy?
Opinion

Can Europe live without Russian energy?

by SAT Reporter
April 29, 2022
Why Africa needs more women in entrepreneurship
Opinion

Why Africa needs more women in entrepreneurship

by SAT Reporter
April 28, 2022
Next Post
Zimbabwean banks will not lend to stop the currency’s slide.

Zimbabwean banks will not lend to stop the currency’s slide.

Premium Content

Ahmed Musa: Nigeria coach Gernot Rohr refuses to say if clubless Musa will be called up

Ahmed Musa: Nigeria coach Gernot Rohr refuses to say if clubless Musa will be called up

February 18, 2021
Divert arms money to fight COVID-19, ensure vaccine for all, pope says

Divert arms money to fight COVID-19, ensure vaccine for all, pope says

December 18, 2020
Kenya says Chinese-built port in Lamu to receive first ship soon

Kenya says Chinese-built port in Lamu to receive first ship soon

May 7, 2021

Browse by Category

  • African Continental Free Trade Area
  • African Start ups
  • Algeria
  • Analysis
  • Angola
  • Asia
  • BOTSWANA
  • Botswana
  • Burkina Faso
  • Burundi
  • Business
  • Business
  • Cameroon
  • Central Africa
  • China
  • Climate Change
  • Climate Changev
  • Congo Republic
  • COVID 19
  • Culture
  • Democratic Republic of Congo
  • Eastern Africa
  • Egypt
  • Entertainment
  • Environment
  • Ethiopia
  • Europe
  • Fashion
  • Finance
  • Food
  • Food and Drink
  • Foods
  • Ghana
  • Global
  • Guinea
  • Health
  • Immigration
  • in Southern Africa
  • International news
  • Just In
  • Kenya
  • Lesotho
  • Libya
  • Life Style
  • Lifestyle
  • Malawi
  • Malawi
  • Mali
  • Markets
  • Middle East
  • Mozambique
  • Namibia
  • Nigeria
  • North Africa
  • Opinion
  • Politics
  • Rwanda
  • Senegal
  • Seychelles
  • South Africa
  • South Sudan
  • Sports
  • Startup Africa
  • STOCK EXCHANGE
  • Tanzania
  • Tech
  • Togo
  • Travel
  • Travel
  • Tunisia
  • Uganda
  • Uncategorized
  • West Africa
  • World
  • World
  • ZAMBIA
  • Zambia
  • ZIMBABWE
  • Zimbabwe

Browse by Tags

African business news Africa New Africa News african footballer African investments African manufacturing industry African news Business Classic Content coronavirus Cyclone Idai Egypt Explore Bali Finance Foods football France Hopewell Mauwa kwacha Life Style mali news Market Stories MthuliNcube news Odion Ighalo Oilandgas Pandemic Premium reserve bank of Zambia Russia soccer South Africa Southern African News sports Stay Home United Stated Vaccine Wheat Work From Home Wuhan Zambia Zimbabwe Zimbabwe Harare Manufacturing Africa Employment creationn Zimbabwe job creation

WHO WE ARE

The Southern African Times is a regional bloc digital newspaper that covers Southern African and the world news. The paper also gives a nuanced analysis on news and covers a wide range of reporting which include sports, entertainment, foreign affairs, arts and culture.

Facebook Twitter Youtube Instagram Rss

Copyright © 2022 The Southern African Times | Powered by The Southern African Times

Privacy Policy

Terms and Conditions

  • Home
  • Southern Africa
  • Global
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
  • Opinion
  • Sports
  • Lifestyle
    • Health
    • Culture
    • Food and Drink
    • Entertainment
  • SAT Jobs

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?