THE RISKS AND CHALLENGES OF AGRICULTURAL PRODUCTS GLOBAL MARKET

Abstract

The modern world faces increasing challenges in the agricultural market, including climate change, natural crises, and geopolitical tensions. The consequences of the COVID-19 pandemic and the war in Ukraine have disrupted the achievement of sustainable development goals, encompassing economic, social, and environmental aspects. Since the onset of the COVID-19 pandemic, global supply chains have been significantly disrupted, rendering the agricultural market exceptionally vulnerable. Subsequently, monetary and fiscal policies aimed at mitigating the pandemic’s impact led to a sharp rise in commodity prices, particularly wheat and corn prices, which became 40-50% higher than the average price over the past decade. However, in 2022, the blockade of Black Sea ports due to the war in Ukraine severely restricted access to supplies, prompting many countries to protect their food security by limiting grain exports. Currently, the world faces serious global challenges, including ecological crises and geopolitical tensions, which threaten sustainable development. Geopolitical tensions, notably between the United States and China, and the war in Ukraine exacerbate the global situation. The global community grapples with risks related to climate change, shifting precipitation patterns, inflation, and soil degradation, all of which impact agricultural productivity and food prices. Soil degradation costs the EU approximately 97 billion euros annually. The Global Food Price Index reflects rising prices, creating pressure on global food security. Grain supplies have been reduced due to restrictions in Black Sea ports and logistical challenges, posing a threat to the global food system. Changes in the global behavior of states and the private sector may mitigate these risks by unlocking logistical routes, reducing trade restrictions, providing financial assistance to affected areas and agriculture, and seeking ways to optimize resource utilization.