Home > Famines and Crop Destruction, Natural Disasters > World Food Prices Moving Closer To Crisis Levels, No Normalization Expected Anytime Soon

World Food Prices Moving Closer To Crisis Levels, No Normalization Expected Anytime Soon


Reuters – “World food prices rose in September and are moving nearer to levels reached during the 2008 food crisis.

The United Nations food agency reported on Thursday that the worst drought in more than 50 years in the United States had sent corn and soybean prices to record highs over the summer, and, coupled with drought in Russia and other Black Sea exporting countries, raised fears of a renewed crisis.

The Food and Agriculture Organisation’s (FAO) price index, which measures monthly price changes for a food basket of cereals, oilseeds, dairy, meat and sugar, rose 1.4% in September, mainly due to higher dairy and meat prices.

‘It’s highly unlikely we will see a normalisation of prices anytime soon,’ said FAO senior economist Abdolreza Abbassian.

Parmjit Singh, head of the food and drink sector at London law company Eversheds, said higher prices would place further pressure on squeezed international food supply chains.

‘Manufacturers and producers will naturally want to pass on increased costs to their clients but they will meet with stiff resistance from retailers who are reluctant to increase checkout prices for increasingly value-conscious customers,’ Singh said.

FAO’s index is below a peak reached in February 2011, when high food prices helped drive the Arab spring uprisings in the Middle East and north Africa, but current levels are very close to those seen in 2008, which sparked riots in poor countries.” Source – The Guardian.

Flashback: ‘Drought Of Biblical Proportions’ Strikes Spain’s Olive Oil Harvest – “That has caused prices to spike, with consumers expected to pay more for the ‘green gold’ in coming months as supermarkets jack up prices. ‘It’s been a drought of biblical proportions, the worst since 1945, the ‘year of hunger’ for Spain,’ said Nuñez de Prado, adding rainfall where his farm is located in the shadows of the Sierra Madre mountains was the lowest since that year.” Read more.

Flashback: US Drought Now Officially Among The Worst In American History May Intensify In The Months Ahead – “The drought scorching the nation has reached a level surpassed only twice before in recorded weather history. The National Climatic Data Center reported this week that 57.2% of the contiguous USA is ‘moderately to extremely dry,’ a percentage topped only during the Dust Bowl of the 1930s and during another drought in the mid-1950s.” Read more.

Flashback: Worst Drought In Years Devastates Southeast Europe, ‘Only God Can Help Us’ – “After the harshest winter in decades, the Balkans in the southeast of Europe is now facing the worst drought in years. Sadly, it will only serve to compound the global effects of America’s current drought. Nikola Radic, a Serbian farmer, said, ‘There is no salvation here.’ Radic says he ‘lost hope for salvation even a month ago, and now it’s even worse.’ In some places in Bosnia, the drought is the worst in 40 years.” Read more.

  1. 10/05/2012 at 4:43 PM

    Gas in CA, due to a refinery fire and shutdown, is now over $5/gal. It shot up over 50 cents a gallon overnight due to shortages. That will also cause all other prices to rise here as well.

    Like

  2. ICA
    10/05/2012 at 8:04 PM

    It works out to just over $5 per gallon here as well. And that’s on a normal day.

    Like

  3. 10/06/2012 at 1:15 AM

    But with liters, at least the sign at the gas station makes it look cheaper!!

    Like

  4. Willard
    10/06/2012 at 1:57 AM

    Come on up North Kurt !!

    Like

  5. 10/06/2012 at 9:37 AM

    I heard N. Dakota and Minnesota got snow already, no thanks!

    Happy Thanksgiving, Canucks.

    Like

    • 10/07/2012 at 2:24 PM

      Yep, we had snow this past weekend! I noticed the other day our gas was 3.89 per gallon for regular unleaded, so I guess we can look forward to 5.00 per gallon soon.

      Like

  6. Willard
    10/07/2012 at 11:59 AM

    Gooble gooble

    Like

  1. 10/07/2012 at 1:44 AM

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