Barclays Research Examines How War and Extreme Weather Are Exacerbating Food Insecurity

Rhea-AI Summary

Barclays' Impact Series report highlights the growing challenges to global food security, exacerbated by the war in Ukraine and extreme weather. The report warns that ongoing food price pressures could lead to shortages, particularly in vulnerable countries. Key findings include the potential for social unrest due to rising food insecurity, reduced crop yields from climate impacts, and increasing trade protectionism which threatens the availability of essential food crops. The report underscores that previous gains in reducing hunger and poverty are at risk.

Positive

• Barclays' data-driven analysis offers critical insights into food security challenges.
• The report addresses significant global issues that could inform policy decisions.

Negative

• Rising food prices could cause shortages in vulnerable nations reliant on imports.
• Increased trade protectionism may worsen food insecurity, affecting over 40% of global calorie intake.
• Record temperatures and droughts are expected to decrease crop yields, compounding food production challenges.

A new Barclays Impact Series report raises concerns about rising food protectionism, which could hamper efforts to improve food security

LONDON--(BUSINESS WIRE)-- Barclays today released the 10th edition of its Impact Series, entitled “Global food systems under mounting pressure.” The research report examines how the war in Ukraine, coupled with extreme weather events, is threatening food security globally.

(Graphic: Business Wire)

“With extreme weather events coinciding with trade restrictions and conflict, years of positive progress in reducing hunger and poverty are being rapidly reversed,” says Hiral Patel, Global Head of Sustainable and Thematic Research. “The war in Ukraine shows how a localised shock can cascade through international supply chains.”

Barclays’ Impact Series uses data-driven analysis to explore the social impact of economic, demographic and disruptive changes affecting markets, sectors and society at large. The key findings of today’s report include:

• Despite having eased off the highs reached early last year, food prices are likely to stay high, leading to shortages in the most vulnerable countries reliant on imported food.
• Rising food insecurity will likely lead to social unrest and increased migration from the poorest parts of the world.
• Record temperatures and prolonged droughts will lead to reduced crop yields in many regions, adding to pressures on food production and distribution caused by the war.
• Increased trade protectionism related to food will only exacerbate the situation as more than 40% of the world's calorie intake currently comes from three crops produced in a handful of countries.

For more information, please visit: www.cib.barclays.

About Barclays

Barclays is a British universal bank. We are diversified by business, by different types of customer and client, and geography. Our businesses include consumer banking and payments operations around the world, as well as a top-tier, full service, global corporate and investment bank, all of which are supported by our service company which provides technology, operations and functional services across the Group. Barclays offers investment banking products and services in the US through Barclays Capital Inc. For further information about Barclays, please visit our website home.barclays.

About Barclays Corporate and Investment Bank

Barclays Corporate and Investment Bank is comprised of the Investment Banking, International Corporate Banking, Global Markets and Research businesses. It provides money managers, financial institutions, governments, supranational organisations and corporate clients with services and advice for their funding, financing, strategic and risk management needs. For further information about Barclays Corporate and Investment Bank, please visit our website www.cib.barclays.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230109005658/en/

Ellie Austin (UK)

44 (0) 20 7773 6461

ellie.austin@barclays.com

Matt Scully (US)

212-526-7844

matthew.scully@barclays.com

Source: Barclays

FAQ

What are the key concerns raised in Barclays' latest Impact Series report on food security?

The report highlights rising food prices, increased trade protectionism, and climate change effects as key concerns threatening global food security.

How does the war in Ukraine affect global food systems according to Barclays?

The war in Ukraine has disrupted supply chains, leading to increased food prices and potential shortages in vulnerable countries.

What impacts does climate change have on food production as noted in the report?

The report indicates that record temperatures and prolonged droughts are expected to reduce crop yields significantly.

What social consequences could arise from rising food insecurity discussed by Barclays?

The report warns that rising food insecurity may lead to social unrest and increased migration from impoverished regions.

What percentage of global calorie intake is threatened by trade protectionism according to the report?

The report states that over 40% of the world's calorie intake comes from three crops produced in a few countries, which are threatened by rising trade protectionism.