Global food prices skyrocket to the highest level in the last decade | Business

global Food price According to the United Nations Food Price Index, it rose for 12 consecutive months in May, up almost 40% year-on-year. Last month was also a sharp rise in average food prices over a decade, rising 4.8% from April to May.

Abdul Reza Abbasian, senior economist at the Food and Agriculture Organization of the United Nations, talks about China’s amazing demand for corn. Brazil Prices are also rising rapidly around the world due to increased global use of vegetable oils, sugars and cereals.

“What I mean is that the demand is almost amazing to everyone,” Abbasian told CNN Business. “This demand requires a strong supply response.”

Global inflation is raising prices for almost everything from food to steel, wood and energy.Prices in countries that are members of the Organization for Economic Co-operation and Development Soaring in April The highest rate since 2008.

Increased biodiesel usage and global prices for meat and dairy products have also been modest. International palm oil prices have slowed palm oil production growth in Southeast Asian countries, according to a UN report. Due to rising global import demand, inventories in major exporting countries have been kept low, reaching the highest level since February 2011.

“In the vegetable oil sector, demand is generally very strong,” said Abbasian.

Brazil is reducing the number of corn and sugar experts in the drought, according to Abbasian. Abbasian describes how much corn farmers in Brazil and the United States will produce this summer and early fall. Speculation was a concern for food managers and economists.

“This is a big problem everyone is thinking about right now,” he said. “In the grain sector, there were many problems with what would happen to production this year. There are many stories that the drought in Brazil is really affecting the corn market.”

US food prices have yet to return to normal this year after soaring due to pandemic grocery purchases a year ago.U.S. overall food prices have risen 2.4% Fruit and vegetable prices in April rose 3.3% year-on-year.

Global food prices skyrocket to the highest level in the last decade | Business

Source link Global food prices skyrocket to the highest level in the last decade | Business

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