Global food prices continue to rise, approaching a 10-year high
June 12, 2024, 9:21 AM
Urea Network
1819
Food prices hit a decade high, with grain costs surging as weather and labor issues affect supply.
According to the Food and Agriculture Organization of the United Nations (FAO), food prices continue to rise to their highest levels in the past decade.
Specifically, the grain index rose to 133.1, an increase of 7.5 percentage points. The prices of corn, soybeans and wheat have risen in tandem. There is a growing view that in the United States and South America, the main grain producing areas, the harvest will be further reduced due to unstable weather such as dryness and rainfall.
In addition, there are other reasons for rising food prices.
Due to travel restrictions caused by the new crown epidemic, there is a shortage of foreign workers engaged in field work in many countries. At present, with the popularization of vaccines, the demand for food is recovering faster than expected, production cannot keep up with demand, and prices are likely to rise.
In addition, there is also a side where global monetary easing has led to investment funds flowing into food.
As the grain market rises, General Mills, a US food company, will start raising prices for grains, etc. Nestlé President Schneider said, "Today's environment is very unstable and action will be taken on price setting." Japan's Nisshin Oliyou Group and others also proposed price increases. Russian Foreign Minister Lavrov stated that Russia is prepared to continue to impose restrictions on the export of key foods. Prior to this, the Kremlin has suppressed the prices of major grains such as sugar and flour due to price increases.
Specifically, the grain index rose to 133.1, an increase of 7.5 percentage points. The prices of corn, soybeans and wheat have risen in tandem. There is a growing view that in the United States and South America, the main grain producing areas, the harvest will be further reduced due to unstable weather such as dryness and rainfall.
In addition, there are other reasons for rising food prices.
Due to travel restrictions caused by the new crown epidemic, there is a shortage of foreign workers engaged in field work in many countries. At present, with the popularization of vaccines, the demand for food is recovering faster than expected, production cannot keep up with demand, and prices are likely to rise.
In addition, there is also a side where global monetary easing has led to investment funds flowing into food.
As the grain market rises, General Mills, a US food company, will start raising prices for grains, etc. Nestlé President Schneider said, "Today's environment is very unstable and action will be taken on price setting." Japan's Nisshin Oliyou Group and others also proposed price increases. Russian Foreign Minister Lavrov stated that Russia is prepared to continue to impose restrictions on the export of key foods. Prior to this, the Kremlin has suppressed the prices of major grains such as sugar and flour due to price increases.
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June 12, 2024, 9:21 AM
June 12, 2024, 9:21 AM