FAO: The price of food is heading towards the maximum. Hunger and riots in sight
A new report from the Food and Agriculture Organization of the United Nations (FAO) based in Rome. showed that global food prices soared last month, driven by a rise in the cost of vegetable oils and dairy products. The price index, up 1.1%, is nearing an all-time high of 2011, the research showed. For those with a short memory we remember that 2011 was an "Annus Horribilis" for many countries, starting with those of the Sahel and the Middle East, covered by the famous "Arab Springs", popular uprisings born on the basis of these price increases. food and that led to nothing good. Now the situation is, if that is possible, even worse.
According to the FAO, the fallout from an energy crisis, reduced export readiness and other supply-side constraints, notably labor shortages and adverse weather, have pushed prices higher.
The Vegetable Oils Index rose 4.2% month-on-month in January to hit record highs. The prices of all major oils have risen, in part supported by the increase in crude oil prices. The Dairy Price Index also rose 2.4%, the fifth consecutive monthly increase, with the largest gains recorded by skimmed milk powder and butter. In this case it would be necessary to evaluate the fallout of Covid in Europe and the new "Farm to fork" policies that are increasing production costs in the old continent. The cereal price index was up only 0.1%, with corn posting a 3.8% rise over the month, according to FAO.
Meat prices rose in January, while the sugar price index fell 3.1% from the previous month, partly due to favorable production prospects in major exporters of India and Thailand, the report said.
Meanwhile, world grain prices fell 3.1% on the back of large harvests in Australia and Argentina. "By 2022, global wheat plantations are expected to expand, supported by mostly favorable weather conditions in the Northern Hemisphere, although high input costs could discourage further expansion," FAO said.
The United Nations body increased its projection of world grain production in 2021 to 2.793 billion tons from a previous estimate of 2.791 billion tons.
Rising food prices have contributed to a wider rise in inflation as economies recover from the Covid-19 crisis. FAO has warned that higher costs are putting poorer populations in import-dependent countries at risk.
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The article FAO: the price of food is going to a maximum. Hunger and riots in sight comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-fao-il-prezzo-del-cibo-sta-andando-verso-i-massimi-fame-e-rivolte-in-vista/ on Sun, 06 Feb 2022 13:26:40 +0000.