Food Prices in GCC Could Rise Due to Supply Chain Disruptions

Food Prices in GCC Could Rise Due to Supply Chain Disruptions

Access to agricultural produce and certain food imports to the GCC could be affected by global supply chain disruptions in the future, according to findings of a new report.

A study by Marmore, the research arm of Kuwait Financial Centre, Markaz, looked at the impact of global events on food security in the GCC.

According to the report, the region has employed sufficient financial buffers to ensure a continuous supply of food imports long-term, along with wielding the ability to absorb intermittent price shocks. However, import dependence on agricultural produce has raised concerns over supply chain disruptions and its impact on food prices and shortages.

In Kuwait, 95% of the country’s food needs are met through imports. The study stated that in January 2022, food shipping costs to the country reportedly increased tenfold, from $1,400 to $14,000 per tonne, while food inflation in March 2023 was recorded at 7.46% YoY, rising from 7% YoY in the previous month.

In recent years, COVID-19, the Russia-Ukraine conflict, higher freight costs, and climate change have contributed to food shortages globally. In 2022, the Global Report on Food Crisis by the World Food Programme revealed a rise in food shortages to 205 million people, up from 135 million