All into Account: Food Insecurity: A New Normal

Tune into our new podcast episode on J.P. Morgan Research’s All into Account channel where we discuss the food security crisis, which brings new challenges as concerns about geopolitics and supply chain security have magnified the fundamental instability across the global food system. The combined forces of Russia’s war on Ukraine, the pandemic and climate change point to recurring food insecurity, which is now impacting 2.3 billion people. The prevalence of severe food insecurity at severe levels has increased by 2.5%-pts since 2019, rising to the equivalent of 207 million more people. Our strategists see structurally higher food inflation and agricultural commodity prices here to stay as fundamental risks remain high. Food export restrictions have surged since the onset of Russia’s war on Ukraine, and agri prices could rise another 10-20% over the course of 2023, while fertilizer prices will remain elevated into next year. We recommend staying long the agri complex and investing in food producers that are adapting, and we favor food producers that can sustainably grow revenues at a faster pace than industry average.

 

Speakers:

Joyce Chang

Tracey Allen,

Nora Szentivanyi

Ken Goldman

Celine Pannuti

 

This podcast was recorded on September 30. 2022.

This communication is provided for information purposes only. Institutional clients can view the related report at www.jpmm.com/research/content/ https://www.jpmm.com/research/content/GPS-4210680-0 for more information; please visit www.jpmm.com/research/disclosures for important disclosures. © 2022 JPMorgan Chase & Co. All rights reserved.