World food prices can grow, because China expects difficulty harvest, reports Bloomberg.
A serious energy crisis undermines the prospects for growth in production, which can provoke a new surge in prices, predicts the publication. Among the most affected by the lack of electricity were the northeastern provinces, such as Jilin, Liaoning and Heilongjiang, where about half of corn and soybeans are grown in China.
PRC this year will not be difficult to recycle harvest after some enterprises have been proposed to suspend or reduce production to save electricity. Over the past year, the country has imported a record number of agricultural products due to internal deficit, which led to price increases for food.
Some companies have bought backup generators in case of a long-term power outage. Electricity is necessary for drying a crop – an important process before storing and selling. Corn and peanuts can worsen in quality if they are not processed on time, emphasizes the publication.
Extreme weather conditions, growing demand and strict coal restrictions led China to a catastrophic lack of electricity. Related to these facilities in production and supply chain can jeopardize the world economy.