Miller Magazine Issue: 147 March 2022

123 MARKET ANALYSIS MILLER / march 2022 PHARMA & NUTRITIONAL CHEMICALS & HOME CARE BEAUTY & PERSONAL CARE INDUSTRIAL & DURABLE GOODS LIQUID FOOD & BEVERAGE PASTA, BAKERY &MILLING SWEETS, CONFECTIONARY & SNACKS FOOD, FRESH & CONVENIENCE #ipackima ipackima.com 3 - 6 MAY2022 FIERAMILANO RHO - ITALY YOUR BUSINESS COMMUNITIES A JOINT VENTURE BETWEEN: IPACK IMA SRL Tel. + 39 02.3191091 ipackima@ipackima.it A PROJECT BY: The situation remains very fluid and introduces considerable uncertainty into an already tight global marketplace. Of immediate concern is the vulnerability of net food-importing countries highly dependent on Ukraine for supplies—such as the highly exposed countries in the MENA region. The global response to the Ukrainian situation should include a strong global food se- curity dimension, and ensure that any sanctions placed on Russia not impact third parties reli- ant on Russian exports. To the extent possible, food and fertilizer exports should be allowed to continue unimpeded; failing that, mitigation packages should be provided to affected third party countries. Placing sanctions on those sec- tors will only exacerbate world shortages and penalize mainly populations that are already food insecure. With skyrocketing agricultural prices, there is the risk that some countries may seek to insulate domestic producers by restricting exports. Such moves should be avoided. As we saw in 2007-08 and 2010-11, these beggar-thy-neighbor policies can have harmful effects on importing countries, particularly the most vulnerable. In this context, both the sanctions aimed to enforce internation- al laws, and export restrictions used to protect domestic consumers, have to be designed to protect global food security, and consequences on third parties need to be assessed carefully. Finally, the reliance of many countries in the world on Russian energy products will trigger important policy debates. Calls for greater en- ergy sovereignty and diversification will likely occur. However, policies that call for ramping up production of biofuels should be viewed with skepticism. Redirecting the current consump- tion of food crops (maize, wheat, oilseeds) to non-food uses around the world, from the EU to Indonesia, is already generating significant tensions in food and fertilizer markets. A holistic approach regarding food and energy security is critical in ensuring that food and nutrition out- comes remain a priority. *This article originally appeared in the Inter- national Food Policy Research Institute (IFPRI) website. **Authors of the article Joseph Glauber and Da- vid Laborde are Senior Research Fellows with IF- PRI's Markets, Trade, and Institutions Division.