It’s COMING!! A Global Food Crisis Which Affects Us ALL!! 😰

What’s the biggest risk that we face Today Some may say war others may say Recession inflation stagflation Pandemics and climate change These are no doubt fair concerns but They don’t quite measure up to the risk Of actual starvation That’s because the world is currently Going through a food crisis the likes of Which we haven’t seen since the second World war That’s exactly what i’ll be covering Today i’ll be doing a deep dive on this Emerging crisis and explaining exactly What it could mean for the global Economy you do not want to miss this [Music] Before we start talking calories a Little disclaimer is what we all need Financial advice ain’t part of my remit I only offer education and entertainment Contact a financial advisor if your Money’s all spent To those joining me for the first time My name is guy and crypto content is What i provide I talk about all things crypto and macro And tell you everything you need to know If you want the latest from me and my Team tap subscribe and the bell icon to Get these videos for free In return for this wisdom all i ask from You my friend is that you watch this

Little number right till the end Okay no more letting this sort of waffle Intrude it’s time for some frightening Facts about global food If you have no idea what this food Crisis of which i speak is Then you’re lucky That’s because even if the shelves at Your local grocery store are full you’re Probably paying a lot more for the food That you’re buying Now speaking from personal experience There was a time when it was very hard For me to get my hands on certain types Of cereal After doing some research it appears as If there were many people around the World in similar situations Here in the uk we recently saw headlines About a potential chicken shortage in Other parts of the world sunflower oil Is in short supply Corn has also become a hot commodity as People scramble to buy it before Stockpiles dwindle Any of you folks fans of cheesecake or Cheese and bagels well earlier this year There was a pretty big shortage of cream Cheese in the u.s this was because of a Broader shortage of dairy products but Guilty pleasures like cheesecake can’t Compare with some of the other shortages That appear to be impacting the most Vulnerable

See all the stories about baby formula Shortages in the u.s It seems as if this particular squeeze Has been going on for almost two months Of course there are many more shortages Out there that i shan’t go over here but You get the picture Numerous global agencies are chiming in On the food crisis with the g7 saying That we could face widespread shortages In 2023. The un food chief trumped that rhetoric By saying that the food crisis that We’re facing today is the worst that We’ve seen since world war ii Now of course the precursor to shortages Is of course skyrocketing prices and These are happening across the board The u.s has seen double-digit price Increases of items such as ground beef Bacon Eggs oranges fish Coffee pork milk and butter And so on and so on In fact if we were to look at the food Inflation index from the bureau of labor Statistics we can see that in april food Prices were up 9.4 percent over the last Year That’s the highest the index has been in Months and is one of the primary drivers Behind the broader inflation that we’re Seeing Over in europe things aren’t looking

Much better for example back in april Germany’s largest discount supermarket Aldi announced that it would be hiking Prices for some food items by between 20 And 50 percent just think about that Things aren’t expected to get better Anytime soon According to the world bank food prices Are expected to soar by almost 23 Percent this year globally Moreover once we get past the stage of Exorbitant food prices we start moving Into the territory of severe and acute Shortages Shortages that either force people to Adapt and find alternatives or in the Worst case scenario go hungry Now the reason why this is such a Troubling scenario is because the Concept of food shortages is almost Unheard of in this day and age at least In richer countries We have always taken certain things for Granted and the stability of our food Supply chains is one of those things So How the hell did we get here Well there are a number of reasons The sad reality is that global food Security has been a concern for more Than a year Ever since supply chains were thrown Completely out of whack by the pandemic Food shortages have become a reality

Even last year there were many countries That appeared to be in a precarious Position in regards to food This was detailed in the latest food Security report which was completed in March this year i’ll leave a link to it In the description indeed ever since 2020 the prices of food commodities such As wheat sunflower oil soybeans etc have Been steadily creeping up This meant that earlier this year food Prices were already at some of the Highest levels that they had ever been For example in 2021 we saw a 28 increase In the price of food according to the Food and agriculture organization’s food Price index Food security seems also to have spooked The leader of the nation with the most Mouths to feed That’s because late last year xi jinping Put the focus on food security as a top Priority perhaps he knew something the Rest of us didn’t Either way the whole question of food Security took on a completely new Meaning with russia’s invasion of Ukraine back in february With that invasion the entire dynamic of The global food supply chain changed That’s because ukraine is considered to Be one of the most important bread Baskets in the world and the most Important food producer in europe

Its land is incredibly fertile and prior To the invasion it exported 42 percent Of the world’s sunflower oil nine Percent of its wheat almost 10 percent Of its barley and 16 of its maize Any disruption to the exports of such a Large food producer is of course going To cause a massive supply shock Throughout the world and that shock is What we’re now beginning to feel It’s pretty hard to farm when you have Artillery shells flying over your head And all your workers have joined the Army that’s why there was such a massive Fall in the amounts of these commodities Being farmed post-invasion Not only that but given that russia has Embargoed the ukrainian ports on the Black sea the grain that was being Produced can’t be exported for example Given that the merchant fleet is unable To leave odessa grain has begun to pile Up in storage in ukraine by some Estimate there could be as much as 25 Million tons of grain sitting in Stockpiles and at risk of rotting a dire Situation So that’s ukraine But russia is also a really large soft Commodity exporter It exports 21 of the world’s sunflower Oil 14 of its wheat and almost 10 of its Barley Although russia’s farmlands have not

Been damaged by conflict exports of These goods have been restricted partly Because of and in retaliation against Western sanctions and partly to secure Russia’s own food supply so what you Effectively have is a situation where Over 64 of the world’s supply of Sunflower oil is at risk of serious Disruption along with 23 percent of its Wheat and 20 of its barley to give you An idea of just how much that is in the Global food tables analysis by a senior Research fellow at the international Food policy institute estimates that Russia and ukraine account for 12 of the Global calories that the world trades Crazy right I should also add that the invasion has Had an additional impact here on the Cost of these end products it’s not just That there’s likely to be less supply But those commodities which are exported Will command a much higher price That’s because of the added costs of Extraction and transport higher fuel Prices So if things appear dire that’s because They are and unfortunately they’re only Likely to get worse Firstly even if the war in ukraine was To end tomorrow the damage for this year Has already been done That’s because goods take their time to Move through global supply chains and

Given how slow those are the impacts are Likely to be felt all the way till the End of the year on top of that the most Arable parts of ukraine are in the east Of the country which happens to be where Most of the fighting is taking place Arable land is being destroyed either by The conflict or by russia’s scorched Earth policy stories abound of farms Being stripped of their equipment and Landmines being buried in the fields According to the chief executive of one Of ukraine’s largest farming companies They’ve been unable to plant corn and Sunflowers on 30 000 hectares thanks to Mines and unexploded shells you only Need to extrapolate this out to all the Farmland in the east and you get an idea Of the magnitude of the problem who Knows how long it could take before this Land can be used again and how long Before it could be harvested The ukrainian government predicts 25 Percent less land will be planted this Spring than usual And there are many who think that these Are some really optimistic estimates So that’s the grim reality of the war on The ground but even if ukraine manages To start some of the harvesting again it Could still have to contend with a Russian embargo of its black sea ports This could be seen as retribution by Putin and if his recent actions tell us

Anything it’s that he likes to settle Scores Yes there are attempts afoot to move This grain through other modes of Transport like rail But even that has issues given the Different configurations for rail cars And speaking of retribution putin has Recently imposed export controls on Russian potash Now for those who don’t know potash is a Key ingredient in the production of Fertilizer and russia as the world’s Second largest producer accounts for 18 Of global exports It’s a pretty big deal that russia has Restricted this because it means that Those countries that were reliant on Fertilizer to increase the yields of Their crops will have to find Alternatives Countries like brazil receive a quarter Of all their fertilizer from russia Any disruptions to these shipments could Have severe implications for the Planting season of brazilian soybeans This summer Did you know that brazil is the largest Producer of soybeans and that this Commodity is a vital ingredient for Livestock and poultry feed Essentially less soybean production Means less meat and chicken production Shortages and higher prices

Less protein for both vegans and Non-vegans alike And this was just one example Farmers around the world are dependent On fertilizer for all types of food Production It’s hard to appreciate just how Interconnected the world food supply Chain is until it’s so badly disrupted Now despite how much people would like To make this about russia and ukraine There are a number of other regions that Are facing difficult harvests and for Reasons unrelated to putin’s war Firstly did you know that there is a Drought taking place across large Swathes of u.s farmland Land that’s essential for the farming of All types of crops According to this drought monitor by the Usda approximately 12 percent of soybean Production is within an area Experiencing drought it’s 21 for corn And an unbelievable 68 for wheat Now it goes without saying that drought Is no good for crop yields in states Like kansas top wheat producing state Experts are predicting that output will Fall well below the five-year average This will of course mean less supply and Higher prices On top of these droughts in the midwest And u.s you also have the sorry twist of Flooding in other parts of the country a

Pretty painful irony if you ask me In states like minnesota and the dakotas Excessive rains have led to a late Planting of wheat in the regions late Planting implies less than optimal Conditions for yielding the most wheat In places like north dakota only eight Percent of wheat has been seeded This compares to a full two-thirds at This time last year Of course these same drought and Flooding fears were also playing out Across the border in the prairie fields Of canada quite simply north america is Being battered by unseasonal weather Patterns that just couldn’t have come at A worse time But let’s now move halfway across the World to another country that’s facing Muted production and that is china Now if you’ll recall i mentioned that Food security was one of xi jinping’s Main concerns Well last year china had record-breaking Floods which have created quote big Difficulties for food production That’s because these rains have damaged About 30 million acres of crops across The country What this naturally means is that china Has had to rely on imports to make up For the shortfall in yields this year But perhaps the biggest risk to china’s Food supply in the short to medium term

Has been its response to the latest Covid outbreaks as you’ll no doubt know China has held tight with its Zero-covered policy which has had Unbelievable impacts on its economy and The global supply chain I talked about this in much greater Detail in my video about supply chains Which i’ll leave in the description for You The lockdowns and damages to supply Chains have ironically further Contributed to the ccp’s food security Concerns These lock downs have led to severe Shortages of labor fertilizer and seeds According to official data more than a Third of farmers in three northern Provinces have insufficient agricultural Inputs after authorities sealed off Villages in response to covet these Three provinces account for more than 20 Per cent of china’s grain production Another province that’s had its farming Supply severely curtailed is jillin According to the provincial government About one-third of farmers in the region Did not have enough fertilizer at the End of march This was just before they were supposed To begin their planting I’ll link to this ft article below which Can give you a lot more detail on how Bad the food crisis could become in

China The fact is that china seems to have Risked mass starvation for the Unattainable goal of xero covet and if You ask residents of shanghai i’m sure They could attest to that Okay so that’s a bit of an overview of The current situation that we find Ourselves in i’m sure there are many Other regions that are struggling with Their food production and i don’t have The time to go over them all here But the point is that all this has Created a highly volatile situation for Global food supplies and this can have Much more severe impacts than just Hunger Firstly it’s worth pointing out that Food security is leading to a massive Reversal of trade and globalization Countries are now beginning to restrict Their exports for fear of running out of Their own local supplies of essential Commodities for example back in april Indonesia banned palm oil exports This was one of the most drastic cases Of food protectionism that we’ve seen Since the invasion of ukraine Palm oil is an essential commodity which Is used for a number of foodstuffs To understand just how big this ban is You need to take a look at this chart Now indonesia is the largest exporter of Edible oils in the world as it accounts

For a full 35 of all palm oil exports Add to this our shortage of sunflower Oil and pretty soon people will have Nothing to cook their food with Now if you thought that the export Controls by indonesia were bad then the Actions by india last week are going to Be even more severe that’s because the Country has prohibited wheat exports in A bid to shore up local supplies This set off alarm bells in other Countries that may have been relying on Indian wheat imports to help shore up Their local demand And what do you do as a country if you Start having fears about your own food Security well you impose your own Restrictions This causes a chain reaction where Countries all start restricting exports To the point where trade dries up and Those countries that rely on food Imports quite frankly starve The countries that are most reliant on These food imports are those in Particularly volatile regions of the World Take a look at this chart over here it Shows the regions that are most likely To be affected by rising wheat prices Countries in africa and the middle east Are particularly vulnerable to this for Example did you know that egypt imports 80 percent of its wheat from russia and

Ukraine Lebanon gets at least 60 of its wheat From the warring nations i’ll remind you That food shortages and high prices were One of the contributing factors to the Arab spring in 2011 which had its Origins in That’s right egypt It’s also not as if lebanon isn’t going Through its own share of economic Trouble with a collapsing currency and Crazy levels of inflation countries in Africa aren’t faring that much better Either according to this report by the Un on the impact of the invasion benin And somalia get all of their wheat from Either ukraine or russia These are countries that are not the Most stable at the best of times so when You throw in a food crisis to the mix It’s akin to throwing a match into a Tinderbox Now even if you don’t think that a food Crisis in the middle east or africa is Something you should personally be Concerned about Well i have news for you As i mentioned these food crises tend to Have a way of turning into political Crises which then further devolve into Mass unrest which has an unfortunate Tendency to result in conflict Conflict and starvation lead to mass Migration of peoples away from the

Countries in question This has the dual effect of draining the Country of labor vital for growing food In the future it also puts strain on Those other countries where refugees Migrate to I’ll leave a link to a recent podcast by Mckinsey where the consultants talk About the impacts of this global food Crisis on the world’s stability it Really was an interesting listen Quite simply it isn’t really a stretch To assume that a global food crisis Could lead to massive geopolitical Turmoil the likes of which we haven’t Seen for quite some time Now this all reminds me of an article That i once read in the scientific American magazine over 10 years ago It made the argument that food shortages Could actually lead to a collapse of Civilization At the time i thought that it was more Science fiction But in light of what we’re seeing today Science fiction could soon become Uncomfortably real And now a few final thoughts from me i Hope that this video didn’t come across As overly dramatic the truth is i really Am concerned about these global food Shortages It’s something that i’ve noticed Personally during my grocery store

Visits and i didn’t fully appreciate how Bad it was globally until we did the Research for this video Of course there’s very little that we Can do on a personal level to avoid a Global food crisis if governments decide To go the food protectionist route all We can do is point out how nonsensical It is to global progress however we can Make concerted efforts in our own daily Lives to shore up our own food security There’s nothing stopping you from buying Dried goods in bulk some of these can Last for over five years if stored in The right conditions Dry milk and dairy products could come In handy for a rainy day Freeze-dried meats that have been Professionally packaged can have a shelf Life of nearly 15 years Or perhaps you’re lucky enough to have a Garden there’s nothing stopping you from Planting a few vegetables herbs and Spices not only is it more sustainable Than buying the items but it’s more cost Effective not to mention the sense of Pride in growing your own food Now you may think that this advice is Silly and that you see nothing but Abundance when you head down to the Shops and i really do hope that all These concerns about a global food Crisis are overblown But given all the crazy frightening

Stuff that’s been going on recently We really can’t rule anything out And that’s my video for you today folks But i am keen to get some feedback are You also worried about the food crisis Or do you think that it’s all overblown File comments down below Oh and while you’re down there i have Some other goodies for you my socials Page this has links to all the other Places that you can follow me off the Tube Most of these are verified by blue ticks And they include my telegram channel Twitter instagram and tiktok and of Course my email newsletter where i share A breakdown of my personal portfolio as Well as a breakdown of some upcoming Videos oh and if you’ve been eyeing this Magical little number right here you can Bag it in my merch store also linked to Below There’s a whole lot of other merch there Including teas beanies and more all Sales go to help supporting the channel And making sure that i can keep it ad Free If you found this video fire then fire Up the likes don’t forget to subscribe To make sure you’re in line to receive My latest crypto vibes oh and hit that Bell as well that would be swell That’s it for today guys this is guy Bidding you

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