Agricultural Inputs

The unfolding crisis in Ukraine has roiled commodity markets and threatens global food security. Ongoing fallout from the COVID-19 pandemic and other factors have already driven up food prices. Poor harvests in South America, strong global demand, and supply chain issues have reduced grain and oilseed inventories and driven prices to their highest levels since 2011-2013.

In developing countries, rural non-farm labor is rapidly catching up with agriculture in socioeconomic importance. By engaging in non-farm labor—activities like handicrafts, small-scale manufacturing, construction, mining, quarrying, repair, transport, and petty trading—farmers can earn additional income outside of their farms. This income can in turn can be invested in household food security and in productivity-enhancing agricultural inputs. A study in Ghana published in Food Security also finds that participation in non-farm labor can also lead to greater participation in crop markets.

In countries across Africa south of the Sahara (SSA), agricultural value chains often rely on agro-dealers—small-scale local distributors—to help bridge the gap between input firms and farmers. Agro-dealers can thus form an important node of the value chain, providing access to critical inputs like seeds, inorganic fertilizers, and new agricultural technologies that can help increase productivity and improve food security.

As Ethiopia’s population has become increasingly urbanized over the past decade, more and more households have come to rely on markets, rather than their own farms, for their daily food needs. This dependence means that well-functioning agri-food value chains have become increasingly vital to food security for much of the population.

In 2018, African swine fever (ASF), a deadly hemorrhagic disease found in pigs, was reported for the first time in China. By mid-2019, the disease had infected hundreds of millions of pigs—anywhere from 30 to 70 percent of the country’s swine population. Millions of pigs were culled in an effort to slow the spread of the disease, resulting in a drastic reduction in the volume of Chinese pork produced.