Food prices are climbing globally, forcing families to make difficult choices and prompting policy responses from governments. In the UK, single mother Susan Lilley said she is often forced to choose less nutritious, cheaper options for her children due to rising costs. ‘I can go and buy a 35p donut versus a £4.50 box of strawberries,’ she said, adding that it ‘won’t give her the brain power for school.’ During the pandemic, families of 90,000 children received £27 per child every two weeks, a support Lilley said made a real difference.

Global Factors Driving Up Costs

Rising fertilizer prices are a major contributor to increased food costs, according to experts. The European Parliament approved measures to support farmers by allowing up to 80% liquidity aid for additional fertilizer costs. The EU relies on imports for 30% of its nitrogen and 70% of its phosphate fertilizers. Fertilizer production depends on materials like sulfur, ammonia, and phosphate rock, many of which are now scarce due to global disruptions.

The ongoing war between Russia and Ukraine is disrupting key commodity markets. Russia produced 7.5 million metric tons of sulfur in 2022 and is a major oil-producing country, where sulfur is a byproduct of refining. Ukrainian drone strikes on Russian oil and fertilizer infrastructure have significantly reduced sulfur supply. Russia’s ammonia exports have also dropped to about 80% below pre-war levels.

Local Impacts and Consumer Behavior

In the United States, politicians are often criticized for blaming domestic manufacturers for rising food prices. However, the real causes are global disruptions, including geopolitical instability and misguided policies. Steve Moore argues that the economics of global supply chains are often misunderstood. Fertilizer is a key input in American agriculture, and without it, crop yields and food production decline, leading to higher grocery bills.

In South Korea, fast-food prices have also surged over the past decade. The cheapest food, once synonymous with fast food, is now a luxury for many. Prices at popular chains like Subway and Starbucks have risen by 39%, exceeding general inflation rates. Experts attribute the rise to increased food, labor, and energy costs, as well as increased demand for fast food as a more affordable dining option. Michael Bognano, an economics professor at Temple University, noted that rising food and labor costs have pushed prices up, while consumer behavior has further driven demand and prices.

Policy Responses and Challenges

Efforts to mitigate the impact of rising food prices are underway. In the UK, Sinn Féin assembly member Danny Baker introduced a new bill aimed at addressing the issue. In the EU, the European Parliament approved changes to the Common Agricultural Policy to support farmers. These include higher advance payments on direct payments and greater flexibility for member states to adjust budgets for the next year. The measures were passed with 576 votes in favor, 62 against, and 15 abstentions.

Despite these efforts, the challenges remain significant. Rising energy prices, geopolitical tensions, and supply chain disruptions continue to strain global food systems. As families like Lilley’s struggle to afford nutritious food and farmers face rising input costs, the need for broad and sustained policy responses is clear.