Cambodia - Market Update - Focus: Effects of the COVID-19 pandemic and the Ukraine crisis on food prices and market functionality, April 2022



The Ukraine war and ensuing sanctions imposed on Russia are having major implications on global food and energy markets as both countries are significant exporters of grains (especially wheat and barley), agricultural fertilizers (such as potassium, nitrogen, phosphorus); and Russia is a major global producer and exporter of crude oil and natural gas.

This does not happen in a vacuum - global supply chain bottlenecks combined with rising inflation and record debt have disrupted the economic recovery from the COVID-19 pandemic of many countries.
The COVID-19 pandemic has been rapidly evolving since the beginning of 2020 and has had a major impact on the global economy.

The effects of climate change are threatening to reduce yields in other global bread baskets such as China (delayed rains) and India (heat waves). Against this backdrop of overlaying shocks, the UN Secretary General Antonio Guterres warned on May 18 of the “spectre of a global food shortage” that could last for years.
To understand how these shocks are impacting food availability and access to markets in Cambodia, the World Food Programme (WFP) together with the Agricultural Marketing Office (AMO) monitors the retail and wholesale prices of key food commodities (see Annex 1 and 2) in 45 urban and rural markets across the country (see Methods section). An average of around 250 traders and market chiefs are called every two weeks. Market chiefs are also interviewed to assess market functionality, including supply and demand issues.