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Global Food Prices Climb Towards Record

Bloomberg writer Megan Durisin reported on Thursday that, “Global food prices jumped toward a record last month, further adding to the surging cost of living for consumers.

“World Food Prices Are Climbing Closer Toward a Record High,” by Megan Durisin. Bloomberg News (February 3, 2022).

The United Nations’ index of prices rose 1.1% in January, pushed up by more expensive vegetable oils and dairy.

The gauge is edging closer to 2011’s all-time high, and unfavorable weather for crops and the fallout from an energy crisis threaten to keep prices high going forward.

The Bloomberg article stated that, “Crop supplies also face risks from bad weather and geopolitical tensions. A dry spell has hit South American soy fields, while palm oil prices have reached a record due to labor shortages and export restrictions. The possibility of conflict at the Ukraine border also has the market watching for any impact to Black Sea grain shipments.

“For now, output is struggling to keep up with demand as economies rebound from the pandemic, farm adviser Agritel said in a note this week.”

Also this week, Reuters News reported that, “World food prices rebounded in January and remained near 10-year highs, led by a jump in the vegetable oils index, the U.N. food agency said on Thursday.”

The Reuters article added that, “Rome-based FAO also raised its projection of global cereal production in 2021 to 2.793 billion tonnes from a previous estimate of 2.791 billion tonnes, according to its cereal supply and demand outlook.”

Keith Good Photo

Keith Good is the social media manager for the farmdoc project at the University of Illinois. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.

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