Market Morsel: Lebanon crisis
Most will have seen the horrific images from the fertilizer explosion at the Beirut port last week. This is a huge disaster which will have long-standing effects.
Lebanon was already suffering through a financial collapse which has seen its food prices increase dramatically during 2020.
Lebanon imports the majority of its grain through the Beirut port, where it is stored in one central silo (120kmt). This silo is effectively ruined, causing a potential food crisis for the coming year.
As we speak humanitarian aid in the form of UN flour is en route to Lebanon. Australia has been a significant benefactor donating A$2m to the World Food Program to assist in the recovery efforts.
The charts below show the consumer price index for food in Lebanon and the imports versus domestic demand for grains.
Our thoughts are with the people of Lebanon during this trying time.