• Food prices have seen unprecedented global growth, according to the latest FAO report.
In March 2022, food prices increased by 12,6% globally. According to the latest report from the FAO (Food and Agriculture Organization of the United Nations), cited by Bursa newspaper, the global index reached a new all-time high of 159,3 points. The previous maximum was also recorded this year, in February, with the figures showing 141,4 points. Annual global food price growth reached 33,6%, the highest in nine months, up from 21,3%.
The FAO press release reports that "The latest increase reflects new all-time highs for vegetable oil, grain and meat prices, while sugar and dairy prices have also seen significant increases."
The upward trend in the prices of food products may accelerate in the next period, in the tense international conditions of the increase in the price of energy, fuels and chemical fertilizers necessary for agricultural production.
Price jumps in basic food
The largest monthly price increase of 23,2%, after an increase of 8,5% in the previous month, was recorded by the average price of vegetable oils. Annual price growth reached 56,1% from 36,8%. Over the past 12 months, the average monthly increase in global oil prices was 4,1%.
These surprising values were determined by the drastic reduction of exports from the Black Sea region, amid the armed conflict in Ukraine. The unprecedented rise in the price of sunflower oil has also driven up the prices of palm, soybean and canola oil amid increased global demand.
The price of sugar rose by 6,7% in March 2022, and annual growth accelerated to 22,6%, from 10,3% in the previous month. In the last 12 months, the average monthly increase in the price of sugar globally was 1,8%. A higher price increase was prevented by the good evolution of production in India, one of the main exporters globally.
The price of dairy products registered its seventh consecutive monthly increase of 2,6%, after an advance of 6,7% in the previous month, and the annual increase moderated to 23,6%, from 25,2%.
Over the last 12 months, the average monthly increase in the price of meat globally was 1,5%. The price of pork posted its biggest monthly increase since 1995. Maintaining strong demand amid reduced supply led to price increases for beef and poultry as well. The price of meat accelerated its annual growth to 19% from 17% and hit a new record on the back of a 4,8% monthly increase, after a 2% advance in the previous month.
Cereals - increased prices
Cereal prices accelerated their annual growth to 37,3%, the highest since July 2011. The disruption of exports from the Black Sea region, but also uncertainties about the state of the wheat crop in the United States caused the price to rise to wheat with a monthly rate of 19,7%, after an advance of 2,1% in the previous month.
The price of corn registers a new record of the last 32 years, increasing by 19,1% compared to the previous month.
Similar records were also recorded for barley and sorghum, reaching monthly increases of 27,1% and 17,3%, respectively.
Another FAO press release on the cereal supply and demand outlook revises the forecast for production in the 2021/2022 season up by 3 million tonnes from the previous estimate, 0,8% above the previous season's production.
Thus wheat production was revised upwards by 1,1 million tonnes to 776,5 million tonnes, due to the positive revision of production in Australia.
Rice production was revised up by one million tonnes to 520,3 million tonnes, a new record high, surpassing the previous season by 0,7%.
According to the FAO, the Russian-Ukrainian conflict will cause a decrease in world grain trade by 2% compared to the 2022/2021 season. Estimates of Ukraine's and Russia's wheat exports were cut by 5 million tons and 3,5 million tons, respectively, and those of corn by 12,5 million tons and 2 million tons, respectively.
Article written by Gabriela Dan, Editor of Arta Albă
Read on White Art and: Interview Mr. Aurel Popescu, president of ROMPAN
