World food prices rose 30% in one year

Prices rose for the third consecutive month in October, rising 3% from September, according to an index published by the Food and Agriculture Organization of the United Nations (FAO). The gains were driven by a sharp rise in vegetable oil and wheat prices.

The FAO Food Price Index tracks monthly changes in a variety of food products. The index has risen more than 30% over the past year. It is now at its highest level since July 2011, FAO said Thursday.

Your Favorite Comfort Foods Are Getting More Expensive

The price of wheat, which is grown on more land than any other cash crop, rose 5% in October due to reduced harvests from major exporters, including Canada, Russia and the United States. The prices of barley, rice and corn also increased.

Stronger prices for palm, soy, sunflower and rapeseed oils led to a 9.6% increase in the FAO Vegetable Price Index. Palm oil prices soared due to concerns about low production in Malaysia due to a shortage of migrant workers.

FAO cited high global demand for a variety of products such as milk powder, poultry, vegetable oils and barley.

Food supplies and prices are under pressure Extreme weather, tangled supply chains, worker shortages and rising costs.

Supermarkets in some of the major economies have struggled to keep their shelves fully stocked at times during the pandemic. In the UK, where the worker shortage has been exacerbated by Brexit, fast food chains have been forced to remove popular menu items due to shortages.

This week, a letter on food storage from the Chinese Ministry of Commerce sparked panic buying from the public. The notice directed local authorities to ensure their citizens had an “adequate supply” of basic goods this winter and to keep food costs stable.
Rising food prices are driving higher costs for consumer goods companies, some of which are passing the price increases on to buyers. Unilever (UL), Kraft Heinz (KHC) and Mondelez (MDLZ) all have raised the prices of popular products.

There may be relief in some areas.

Falling demand for pigs in China helped propel the FAO Meat Price Index to its third consecutive monthly decline. Sugar prices fell in October after rising for six months in a row.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *