Cornell Video

In the first global estimates of share of global food expenditures that goes back to farmers, Barrett and his collaborators find that, on average, 27% of consumer food expenditures goes back to farmers. The rest goes to costs related to convenience, packaging, and quality --all added after the commodity has left the farm. “The biggest impacts of the Russian invasion of Ukraine in the global food system are going to be felt not because of the loss of Ukranian or Russian wheat and maize and fertilizer fromthe market --those things are important and they’re getting a lot of attention, but they ultimately account for a very small share of the consumer price of these products. The real price impact is going to come from the increased cost of manufacturing, transporting, refrigeration caused by rise in energy prices.”