Jessica DiNapoli and Dan Burns

DAVOS (Switzerland) – The growing global food crisis has prompted countries to take protectionist measures that could worsen the situation and lead to a trade war. This was according to policymakers and business leaders at the World Economic Forum.

A source within the government told Reuters that India might restrict sugar exports in an attempt to stem rising domestic prices.

Indonesia is the largest palm oil exporter in the world. It will eliminate a subsidy for bulk cooking oil, and instead, place a price limit on raw materials to local refiners.

Gita Gopinath (first deputy managing director, International Monetary Fund) stated that it was a serious issue and she believes the problem is more urgent than ever.

Davos has seen a large amount of protectionism, prompting urgent calls to negotiate to avoid a full-blown war on trade.

Jay Collins vice-chair of banking, capital market and advisory, said, “It’s important that the leaders in the world sit down with calm and talk over how we will handle trade, food and investment.” Citigroup (NYSE: ) stated at the Reuters International Markets Forum, Davos.

Collins stated that “there have been a lot conversations with the G7 over the last 48 hours.”

HOUSING

Gopinath stated that 40% of the food consumed by residents living in Sub-Saharan Africa is for food. Government hoarding has been a result of price increases, which have also caused a “huge impact on the cost-of-living”.

On Monday, she stated that “about 20+ countries have placed restrictions in exports of food or fertilizers. That can only make the problem worse.”

Russia’s invading Ukraine has caused a sudden crisis in an already brewing situation. Moscow described it as “special military operations”.

David Beasley (Executive Director of the United Nations World Food Programme) stated that “we were facing an exceptional food crisis prior to Ukraine, food prices, commodity prices and shipping costs were already doubled, tripling or quadrupling.”

Beasley spoke out to Reuters about the rise in people who “march to starvation” over the past four to five year period, saying that it has gone up from 80 to 276million in just four years.

He stated that keeping the ports shut down as Ukraine’s harvest season approaches in July/August would be a declaration war against global food supplies.

Beasley stated that Davos has been in touch with many businesses to see how they can help the global food crisis.

‘NOT SUSTAINABLE’

Erik Fyrwald (CEO of Syngenta Group) stated that agriculture must be part of the solution for climate change. He spoke during Monday’s panel discussion.

Fyrwald explained that Syngenta operates demonstration farms, which show how organic farming methods such as covering crops with winter crop to avoid soil erosion and not tilling the ground are more beneficial for soil health and food security.

Gilberto Tomazoni CEO of, suggests another solution for the crisis. JBS SA (OTC): The world’s biggest meat processor spoke to a WEF panel Tuesday.

Tomazoni stated that humanity is facing two major emergencies simultaneously. We need to address climate change, and produce more food to support a growing populace.

“And our current production is not sustainable. This is our biggest, most difficult challenge. Tomazoni stated that we have to tackle food waste.