On August 6, the Food and Agriculture Organization of the United Nations (FAO) released the Food Price Index for July 2022, which averaged 140.9 points, 8.6% lower than in June and the fourth consecutive monthly decline from the all-time high of March. The decline in food price indexes in July reflects, among other things, significant declines in the vegetable oil and grain price indexes.

Cereal prices were 11.5% lower than in June, but 16.6% higher than in July of last year. World wheat prices fell 14.5% in July, reflecting, in part, the UN-brokered agreement to resume grain exports from Ukraine's main Black Sea ports, and expectations of a resumption. Nevertheless, wheat prices remain 24.8% higher than last July.

Vegetable oil prices fell 19.2% to 171.1 points, the lowest in the last 10 months. This is due to the decline in international prices for palm, soy, rapesee and sunflower oils, reflecting falling demand and the prospect of adequate exports from major countries. The decline in crude oil prices has also had an impact on the fall in vegetable oil prices.

After Russia's invasion of Ukraine at the end of February 2022, there was already growing international concern about a food crisis due to the COVID-19 pandemic and climate change, combined with market disruptions caused by high fuel and fertilizer prices. In response, on July 15, 2022, the Food and Agriculture Organization of the United Nations (FAO), International Monetary Fund (IMF), World Bank Group (WBG), UN World Food Programme (WFP), and World Trade Organization (WTO) issued a Joint Statement calling for urgent action to address the global food security crisis. The Joint Statement called for short- and long-term actions in the following four key areas to avoid further setbacks in achieving the SDGs.

(i) Providing immediate support to the vulnerable

(ii) Facilitating trade and the international supply of food

(iii) Boosting production

(iv) Investing in climate-resilient agriculture

Maintaining global food and nutrition security will continue to require the international community to work together.

Contributors: KANAMORI Norihito and TUMUR Solongo (Information and Public Relations Office), IIYAMA Miyuki (Director, Information Program)