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As for countries that do not import essential food items from Russia and Ukraine, such as Algeria and Iraq, they still remain vulnerable to global supply chain bottlenecks, which are driving cost pressures among major food exporters such as the United States, Germany, France, China and Australia. “Those who have not engaged in an active diversification strategy, including toward developing the agriculture sector, will remain exposed to market volatility in the long term,” said Jihane Boudiaf, senior economic and risk analyst at S&P Global.
Mitigating measures against food supply and inflation risks
On the back of the ongoing conflict in Ukraine, governments throughout the region have taken several measures to hedge against the consequences of the war, including export bans, price controls, and cash handouts to support the most vulnerable and attenuate food inflation. The following are some of the measures that MENA countries have taken:
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