World food prices keep rising. In fact, in September 2021, it has risen for the second successive month and has reached the highest point in a decade. According to Al Jazeera, between April and May, the international food prices have increased by 4.8%. The Food and Agriculture Organization projected growth of cereal production in 2021. However, this is going to be outpaced by future consumption. FAO’s food price index that tracks global prices of the most international food commodities averaged 13 points in September. It is the highest point since September 2011.
Sure, every industry has seen a rise in price. Even the gambling industry has experienced a price hike. This is the reason people take advantage of sizzling hot. The food prices have seen an unexpected growth.
Global Food Prices
For the last two years, global food prices have increased subsequently. According to the Food and Agriculture Organization, in May 2021, food prices were 39.7% higher than what it was in May 2020. Now, let’s take a look at the breakdown.
- Dairy products are now 28% more expensive than last. (FAO)
- Cereal prices have seen a 36.6% price increase since last May. (FAQ)
- There has been a 57% increase in sugar prices since last year. (Al Jazeera)
- Vegetable oil increased the most. There has been a 124% increase since last year. (Al Jazeera)
Reason Food Prices Have Increased Globally
There are various factors that influence the rise in the price of world food.
- Brazil is the largest exporter of sugar in the world. But, the country experienced drought in prime growing areas. This led to crippled crops and delayed harvest.
- Southeast Asia reduced its vegetable oil production, but the biodiesel industry increased demand internationally.
- There has been an increase in demand for grains in China. It has led to the global stores diminishing.
- COVID-19 pandemic played a significant role in the increase of food prices.
- An increase in oil prices has also affected the rise in food prices.
- The pandemic led to labour shortages. So, the number of workers working to harvest and distribute food has also reduced.
The reason behind individual fluctuations is complicated. However, something that you need to pay attention to is the unfavourable and unpredictable weather. This can cause a reduction in harvest and production. Our socio-economic organisation and technological capacity can’t fully manage unfavourable and unpredictable weather. Without any changes, climatic changes will keep reducing imported food. This, in turn, will cause an increase in food prices.
Is High Food Prices Concerning?
No doubt, the rise in food prices is highly concerning. In case you are wondering why to check out the reasons below.
- The underdeveloped, developing, and important-dependent countries will feel the impact of a rise in food prices the most.
- Due to the food inequalities associated with COVID global hunger problem has only escalated. The hunger problem has also been impacted by political conflicts and extreme weather.
- The rapidly increasing food process has led to social unrest. History shows that an increase in food prices has caused riots.
These show how the global food price increase can be truly concerning.