Paris: Global food prices increased at their fastest level in a decade, worsening the most vulnerable problems of the nation in the world when they struggled with a fall from the Pandemic Coronavirus.
The United Nations Food and Agriculture Organization (FAO) is worried that prices soar can trigger further social riots in countries that have been mired in political chaos.
Here is a look at the situation around the world: According to FAO, food prices are almost 40 percent higher in May more than last year, the sharpest increase since September 2011.
On a 12-month base, the price of corn has skyrocketed by 88 percent, soybeans of 73 percent , 38 percent grain and milk ingredients, sugar by 34 percent and 10 percent meat.
“Obviously, this is very concerned,” said Arif Husain, Chief of World Food Program Economist.
In 2007-2008, a brutal increase in the prices of staple foods triggered riots in a number of cities around the world.
Peaked in 2010-2011, the price increase acted as a sign for the Arabian spring rebellion.
The global economy rebounded but inflation also increased because the government had spent a large number of stimulus programs after a pandemic carrying economic activities to traffic jams last year.
China, the World Bank projects needed to above growth of 8.5 percent in 2021, were devouring basic food ingredients such as oil seeds, cereals and meat.
“This is truly China who currently triggers a surge in food prices,” said economist Philippe Chalmin.
The US economy is also expected to rise again strongly, with the World Bank projected growth there at 6.8 percent this year.
But economic recovery is “very uneven” throughout the world, with developing countries to face higher import bills while their income does not grow, said Josef Schmidhuber, Deputy Director of the Trade Division and the FAO Market.
Other factors behind the price spike include drought in Brazil, which drives corn prices, oil prices rebound and explosion of sea transportation costs.
It’s hard to say.
For now, harvest is projected very well.
The US Department of Agriculture estimates that plant production records for 2021-2022 and also record harvests of Brazilian soybeans and American corn.
If this is realized, it will help alleviate the price situation.
But climate conditions can be wild cards in such projections.
Schmidhuber FAO believes that prices will remain relatively high this year, especially if oil prices rise because the agricultural sector spends a lot of energy.
“If they go up, food prices will remain high for a long period of time”.
For Economist FAO Abdolreza Abbassian, “The only thing we know is that the food market will become more fluctuating in the future than in the past”.
In various countries currently facing other “shocks”, such as Covid-19, food price inflation currently stands more than 20 percent, said Arif Husayn WFP.
Lebanon face a serious financial and economic crisis that has sent its currency into Tailspin and bring a country close to default.
There, the inflation rate for food prices reached 226 percent based on 12 months in May, according to the Economics trade website.
In Argentina, the government suspended beef imports for a month in mid-May due to skyrocket food price inflation.
According to the World Bank, high inflation in Nigeria, was driven by a sharp increase at the price of food ingredients, had spread seven million people into poverty.
“Prices rise, but at the same time people’s income was destroyed because of Covid,” said WFP Husain.
“The poor squeezed because prices rise and at the same time they have no money,” he said, showing that conflict is the main cause of food insecurity.
Fao Abbassian economist said there was “There was no evidence that countries were better prepared than 10 years ago” for such price volatility.
“More or less than the same country that is at the forefront of riots and political instability 10 years ago, today can easily find themselves in the same situation: wake up in the morning and find prices have risen very fast,” The Economist said.
However, unlike a decade ago, when rocket food prices are clearly the main cause of social dissatisfaction, now they are “one other problem”.
Rich countries, said Abbassian, must be “ready for upheaval” in Africa, Latin America and Asia.
“Current dissatisfaction now”.
For social riots to erupt, “What you need is a small splash.
It can be food prices, or energy prices, or just bad rain.”