3 weeks ago
Global food prices hit three-year high as supply fears build
Food around the world is getting more expensive.
Prices are now the highest they have been in more than three years.
A group called the Food and Agriculture Organization keeps track of these prices.
In July, food prices went up by 0.6 percent.
Wheat became pricier because of the fighting between Russia and Ukraine.
That fighting makes it harder for ships to carry grain from the Black Sea.
Very hot weather in Europe is also damaging the crops there.
Dry weather in the United States is hurting corn and soybean plants.
Even cooking oils cost more now.
Meat and dairy products got a little cheaper.
More trouble may come with a strong El Niño weather pattern on the way.
The UN Food and Agriculture Organization's food-commodity price index rose 0.6% in July to its highest level in more than three years.
Global wheat prices jumped 5.8% in July to a two-year high as Russian and Ukrainian attacks fueled fears over Black Sea grain exports.
Europe is heading for one of its steepest grain harvest declines on record due to extreme heat, while dryness threatens US corn and soybean yields.
The vegetable oils index climbed to its highest level since June 2022, while meat and dairy prices eased.
An unusually powerful El Niño outlook, fertilizer disruptions and elevated energy costs present fresh production and trade risks for food markets.
- Who
- The UN Food and Agriculture Organization (FAO), which tracks international food-commodity prices
- What
- Global food prices rose to their highest level in more than three years, led by gains in grains, sugar and vegetable oils
- Where
- Global markets, with key concerns centered on the Black Sea grain region, Europe and major US growing areas
- When
- In July, according to a report released Friday
- Why
- Russian and Ukrainian attacks disrupted key grain export corridors, extreme heat scorched European crops, dryness threatened US yields, and risks included El Niño, fertilizer disruptions and high energy costs
Key facts
- Index
- UN FAO Food Price Index
- Monthly change
- +0.6% in July
- Wheat price change
- +5.8% in July; nearly +10% from a year ago; two-year high
- Corn price change
- +3.6% from June
- Vegetable oils index
- Highest since June 2022
- Meat and dairy
- Prices eased
- Key supply risks
- Russia-Ukraine attacks, European heatwave, US dryness, El Niño outlook
Quotes
Monika Tothova
Senior economist at the Food and Agriculture Organization
“Markets will continue to monitor weather conditions in major producing regions, as well as developments affecting trade routes, energy markets and logistics.”
theprint.in
Sources
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