2022 food crises in the context of FAO Food Price Index

The breadbasket of a country or of a region is an area which, because of the richness of the soil and/or advantageous climate, produces large quantities of wheat or other grain. Rice bowl is a similar term used to refer to Southeast Asia; California's Salinas Valley is sometimes referred to as America's salad bowl. Such regions may be the subject of fierce political disputes, which may even escalate into full military conflicts.

Breadbaskets have become important within the global food system by concentrating global food-production in a small number of countries and, in countries such as India, in small geographic regions. As climate change increases weather variability around the world, the likelihood of multiple breadbaskets failing at a time increases dramatically. The 2022 food crises has been in part facilitated by a series of failures in key breadbasket regions, and the 2022 Russian invasion of Ukraine has created significant potential disruption of the respective breadbasket regions that are important for global wheat and oil seed production.

Following the start of the COVID-19 pandemic in 2020, a worldwide surge in inflation began in mid-2021 and lasted until mid-2022. Many countries saw their highest inflation rates in decades. It has been attributed to various causes, including pandemic-related economic dislocation, supply chain disruptions, the fiscal and monetary stimulus provided in 2020 and 2021 by governments and central banks around the world in response to the pandemic, and price gouging. Preexisting factors that may have contributed to the surge included housing shortages, climate impacts, and government budget deficits. Recovery in demand from the COVID-19 recession had, by 2021, revealed significant supply shortages across many business and consumer economic sectors.

In early 2022, the effect of the Russian invasion of Ukraine on global oil prices, natural gas, fertilizer, and food prices further exacerbated the situation. Higher gasoline prices were a major contributor to inflation as oil producers saw record profits. Debate arose over whether inflationary pressures were transitory or persistent, and to what extent price gouging was a factor. All central banks (except for the Bank of Japan, which had kept its interest rates steady at −0.1% until 2024) responded by aggressively increasing interest rates.