According to the UN report, global food prices are rising to their highest level in a decade
Abdolreza Abbasian, chief economist at the UN Food and Agriculture Organization, says the surprising demand for corn in China, a prolonged drought in Brazil and a global increase The use of vegetable oils, sugar and grains has led to a rapid increase in prices worldwide.
“The demand, I would really say, has surprised almost everyone,” Abbasian told CNN Business. “That demand requires a strong supply response.”
Global inflation is raising the prices of practically everything from food to steel to lumber and energy. In countries belonging to the Organization for Economic Co-operation and Development, prices rose to their highest level since 2008 in April.
A higher use of biodiesel and moderate global price increases for meat and dairy products also contributed to the sharp rise in global food prices. According to the UN report, the international palm oil prices reached their highest level since February 2011 due to the slow production growth of palm oil in Southeast Asian countries and the increasing global import demand, the inventories in leading exporting nations are keeping low.
“Demand in the vegetable oil sector has generally been quite robust,” said Abbasian.
Brazil has cut its corn and sugar experts amid its drought, according to Abbasian, who launched speculation about how much corn Brazil and US farmers might get Producing this summer and early fall is a cause for concern for food stewards and economists.
“This is the big question that is on everyone’s mind right now,” he said. “In the grain sector, there have been a lot of problems with what will happen to this year’s production. There’s a lot of talk about droughts in Brazil really affecting the corn market.”
US food prices have not returned to normal this year after the pandemic Grocery shopping made them soar a year ago. Food prices in the US rose 2.4% overall in April compared to the same period last year, while fruit and vegetable prices rose 3.3%.