Global food prices have skyrocketed due to attacks on ports in the Odesa region

In August, global food prices rose to their highest level since the end of 2022. This was driven by the escalation of hostilities in the Black Sea, particularly near the ports in the Odesa region, through which Ukrainian grain is exported.

This is stated in a report by the Food and Agriculture Organization of the United Nations (FAO).

According to the organization, concerns about supplies from key producing regions intensified in August. Prices rose by 1.9% compared to July—primarily due to grains, sugar, and dairy products.

Sugar prices rose by 11.9% over the month, while wheat prices increased by 2.6%. Overall, wheat prices are already 15% higher than last year’s levels.

“Global food markets are focused on supply issues and weather challenges, which are putting additional pressure on farmers who are already suffering from rising production costs,” the FAO noted.

Since mid-July, hostilities in the Black Sea have intensified, and farmers in Ukraine are facing difficulties exporting grain. At the same time, hopes for a peace agreement between the U.S. and Iran are also fading.

Low harvests in Europe, caused by heat waves, could make the continent more dependent on imports, which will intensify competition for supplies.

According to the FAO, the threat of a strong El Niño event means that weather risks are unlikely to subside anytime soon, so global food markets will remain vulnerable to a new inflationary shock.

The organization has also lowered its forecast for global grain production in 2026 to 2.98 billion metric tons—the largest annual decline since 2018.

Since July, the Russians have been continuously attacking civilian vessels in the Black Sea.

For example, the enemy struck a merchant dry cargo ship flying the flag of Guinea-Bissau that was loaded with Ukrainian wheat. One Ukrainian sailor was killed in the attack, and three others were injured.

Russian forces also struck a civilian vessel flying the Liberian flag near the port of Odesa. This was the third attack on this dry cargo ship.

Another ship carrying a cargo of corn was struck by three Russian X-59/X-69 missiles as it was leaving the port of Odesa. Due to the damage sustained, it lost seaworthiness and sank approximately five nautical miles off the coast. Ten people were killed as a result of that attack, including a Ukrainian pilot.

Following the sinking of the foreign bulk carrier “GOLDEN LEO,” the environmental inspection agency surveyed the area—no signs of marine pollution from oil products have been detected so far.

Ірина Глухова