World food prices hit 10-year high in 2021 – Food and Agriculture Organization
New Delhi: World food prices jumped 28% in 2021 to their highest level in a decade, the UN food agency said on Thursday and there is little hope of a return to more stable market conditions this year. The Food and Agriculture Organization (FAO)’s Food Price Index, which tracks the most traded food commodities globally, averaged 125.7 in 2021, the highest since 131.9 in 2011. The monthly index eased slightly in December, but had been climbing steadily for the past four months, reflecting crop shocks and stronger demand over the past year. Higher food prices have contributed to a broader rise in inflation as economies grapple with the coronavirus crisis. and the FAO has warned that high costs are putting poor populations at risk in countries dependent on imports. In its latest update, the food agency was cautious about whether the price pressure could ease this year. ( Food and Agriculture Organization)
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Doubts on yield prospects for next year’s crop (Food and Agriculture Organization)
Abdolreza Abbasian, senior economist at FAO, said in a statement that while higher prices are generally expected to increase output, higher input costs, the ongoing global pandemic and ever more uncertain climate conditions will lead to more stable market conditions in 2022 as well. leaves little room for optimism about its return. The spurt in the prices of fertilizers, coupled with rising energy prices, has raised the cost of so-called inputs used by farmers to produce crops, raising doubts about the prospects of yield for next year’s crop. It is done.
All categories in the index as a whole showed sharp growth during 2021
In December, prices for all categories in the Food Price Index bar dairy products, vegetable oils and sugar fell significantly, the agency said in its monthly update. It cited a slump in demand during the month, concerns about the impact of the Omicron coronavirus pandemic, and supply from wheat crops in the Southern Hemisphere for the decline. However, all categories in the index as a whole showed a sharp increase during 2021 and the FAO Vegetable Oil Price Index reached a record high. Crop futures have seen volatile trading in early 2022, with oilseed markets stirred by drought in South America and flooding in Malaysia. Dairy prices maintained their recent strength in December due to a reduction in milk production in Western Europe and Oceania, the FAO said. ( Food and Agriculture Organization)