Yemen, one of the poorest countries in the Middle East, has been experiencing a severe humanitarian crisis due to an ongoing civil war that began in 2014. Among the most devastating consequences of this prolonged conflict has been food scarcity, which has left millions of Yemenis struggling with malnutrition, starvation, and food price inflation. The crisis in Yemen is not just a political or humanitarian issue—it is also a deeply economic problem, demonstrating the role of supply and demand, inflation, government intervention, and international aid in food security.

As of 2023, more than 17 million Yemenis—over half the country’s population—were experiencing acute food insecurity, according to the World Food Programme (WFP). Food prices had risen by over 400% since the start of the conflict, driven by supply chain disruptions, currency devaluation, and ongoing blockades. The economic principles at play in Yemen’s food crisis highlight the complex relationship between conflict, markets, and resource allocation, offering insights into how war and economic instability create long-term supply shocks.

Understanding the Economic Causes of Food Scarcity in Yemen

The food crisis in Yemen is not solely a result of natural resource shortages, but rather a consequence of war-induced economic collapse and market failures. The country relies heavily on food imports, with nearly 90% of Yemen’s staple food supply coming from foreign markets. However, since the outbreak of war, blockades on ports and infrastructure destruction have severely limited the flow of imported goods.

One of the most significant disruptions has been the blockade of the port of Hodeidah, which historically handled about 70% of Yemen’s food imports. With limited access to global markets, basic food staples such as wheat, rice, and cooking oil have become scarce and unaffordable for most Yemenis.

At the same time, inflation and currency devaluation have further exacerbated the crisis. The Yemeni rial has lost over 600% of its value since 2015, making food imports significantly more expensive. In 2015, one kilogram of rice cost around 150 Yemeni rials, but by 2023, the price had surged to over 1,000 rials per kilogram. This hyperinflation has made it impossible for low-income families to afford basic nutrition, leading to widespread malnutrition.

The Economic Impact of Food Scarcity on Households and Markets

The scarcity of food in Yemen has had devastating economic effects, not only increasing malnutrition and mortality rates but also worsening poverty, reducing productivity, and undermining economic stability. As food prices have risen, families have had to cut spending on essential goods such as healthcare and education, leading to a decline in overall economic well-being.

The concept of price elasticity of demand plays a crucial role in Yemen’s food crisis. While food is a necessity, meaning its demand is inelastic, extreme price increases force households to reduce consumption, switch to lower-quality substitutes, or rely on food aid. The most vulnerable populations—children, pregnant women, and the elderly—have suffered the worst consequences, as their nutritional needs are not being met due to skyrocketing costs.

Local businesses have also suffered. Many small farmers, who previously produced wheat, vegetables, and fruits, have been forced to abandon their land due to war-related destruction or lack of water. The agricultural sector has shrunk by over 40% since 2015, further reducing domestic food supply and increasing reliance on imports.

At the same time, transportation costs have surged, making it even more expensive to distribute food within the country. Fuel prices have quadrupled since 2015, meaning that even when food is available, it remains too expensive for most people to purchase. These rising costs have created a vicious economic cycle, where food scarcity leads to higher prices, lower purchasing power, and deeper poverty.

Government Intervention and International Aid Responses

To address the growing crisis, both the Yemeni government and international organizations have attempted to intervene. However, economic instability and ongoing conflict have severely limited the effectiveness of these efforts.

The Central Bank of Yemen has tried to stabilize the economy by injecting cash into the market and attempting to control exchange rate fluctuations. However, the country’s fragmented political system, with rival governments operating separate central banks, has weakened monetary policy coordination, making it difficult to implement effective economic policies.

International organizations such as the World Food Programme (WFP), the United Nations (UN), and the International Monetary Fund (IMF) have provided billions of dollars in food aid, helping to mitigate some of the worst effects of hunger. In 2022 alone, the WFP delivered food assistance to over 13 million Yemenis, though funding shortages have made long-term sustainability uncertain.

However, some economists argue that food aid alone is not a long-term solution. While it provides short-term relief, it does not address the root causes of food scarcity, such as inflation, currency devaluation, and infrastructure destruction. Without economic stability and investment in local food production, Yemen will remain dependent on external assistance, making it vulnerable to future crises.

Potential Long-Term Solutions and Economic Recovery Strategies

A long-term solution to Yemen’s food crisis requires both economic and political stabilization. Economists suggest that investing in domestic agriculture could help reduce Yemen’s dependence on imports, making food supply more resilient to external shocks. However, this would require major investments in irrigation, infrastructure, and agricultural technology, which remain difficult given the ongoing conflict.

Other policy recommendations include currency stabilization and targeted cash assistance. Rather than relying solely on food aid, some experts propose cash transfer programs that allow households to buy food directly from local markets, helping to boost economic activity while ensuring food access.

Ultimately, the crisis in Yemen highlights the intersection between conflict, economics, and food security. Without political resolution and economic investment, the country’s food scarcity problem will persist, deepening poverty and prolonging suffering. The international community must balance short-term humanitarian assistance with long-term economic strategies to ensure that Yemen moves toward food security and economic recovery.