What's New

Malawi is facing a severe drought crisis linked to the El Niño climate phenomenon. On March 23, President Lazarus Chakwera declared a state of disaster in 23 of Malawi’s 28 districts in anticipation of a poor harvest and appealed for more than $200 million in humanitarian assistance.

Cocoa bean prices have climbed to record nominal levels over the past six months, more than doubling since August 2023 (Figure 1). This price spike has largely been driven by weather-related diseases that have reduced cocoa production in key West African countries accounting for almost three quarters of world supplies.

During 2021 and 2022, global food and fertilizer prices spiked due to several overlapping factors. Demand rose as the world economy emerged from the COVID-19 recession; global supply chains suffered major disruptions associated with the uneven recovery; and the outbreak of war between Russia and Ukraine—both key food and fertilizer producers—generated yet another shock.

Achieving efficient and effective fertilizer usage in agricultural production is a critically important economic and environmental policy objective for countries at all stages of economic development, although the nature of the policy problem may vary radically in different contexts.

International food commodity prices have experienced a series of shocks over the past decade. The prices of rice, maize, and wheat spiked in 2007-08 as a result of supply shocks, demand for biofuels, and export trade restrictions. Commodity prices increased again in 2010-11. And most recently, global supply chain disruptions in the aftermath of the COVID-19 pandemic and Russia’s invasion of Ukraine sent international food and fertilizer prices soaring, though they have moderated somewhat after peaking in mid-2022.