World prices for food record rose and exceeded the 2011 figure. This is stated in the program of the Food and Agricultural Organization of the UN (FAO).
In October, the average value of the food price index, which allows monthly to track the fluctuations in world prices for the most running food products, jumped to 133.2 points – by 3.9 percent above the September level. As noted in FAO, the growth continues for the third month in a row. In particular, the price index for vegetable oil jumped 9.6 percent – to 184.8 points. Such an increase is explained mainly by the rise in prices for palm, soy, sunflower and rapeseed oil. The grain price index rose by 3.2 percent (up to 137.1 points). Moreover, wheat has risen the most rising, it happened against the background of reducing exports with active demand, barley also rose. The price index for milk products has grown to 120.7 points: it was most reflected in the degreased dry milk and butter.
Earlier in November, the prices for a soft winter wheat were established a nine-year record, exceeding a mark of $ 8 for bushel (0.027 tons) for the first time since 2012. The grain is becoming more expensive in the sixth month in a row, while only for October its cost increased by 6.5 percent. Importers expand procurement against the introduction of export duties by Russia and adverse weather conditions – drought during sowing.
As reported by Financial Times, “a typical breakfast index”, which traditionally calculates the publication, rose to the maximum value for 10 years. Futures for coffee, milk, sugar, oats, wheat and orange juice went up by an average of 63 percent in two years. According to analysts, the cost of basic foods will continue to grow at least over the next year.
And the buyers do not have anything else, except to accept the increase in prices for food. The head of the American food concern Kraft Heinz Miguel Patricio explained that there are several reasons for rising prices. First, due to the coronaviru pandemic, the supply of necessary products were disturbed. Secondly, against the background of restoration of the global economy, production does not keep up with demand, and the increase in energy increased costs of manufacturers. In his opinion, prices will grow further, because the population of the planet is growing, and the land area where food can be grown – no.