Global food prices hit record high
Global food prices rises to a record high. Already in 2008 the index reached a record of 213.5. The economic crisis is one of the causes, but also the global weather problems, changes the prices of oil and the expensive costs of the farmers.
Abdolreza Abbassian, an economist at the FOA noted that there have been no riots because of these increases. Abbassian warned that weather changes and other causes may increase the prices further in the next years.
Especially the prices of cereals, corn, milk, butter and sugar prices rise, along with edible oils. This affects everyone in his basic needs and especially affects those with the lowest incomes
The causes of these price increases is very broad and for each product individually.
1.Chees, milk and butter
Increases in price are due to higher costs for farmers and increasing demand for dairy products.
Corn prices have risen by 50% in the U.S. by growing demand from China and the additional production of ethanol from corn products. The drought in South America provides a more limited and crop yield.
Arabica coffee is mainly due to the heavy rainfall in Brazil, Colombia and India have much damage and injury caused a slower growth.
The sugar harvest is greatly reduced by the heavy rains. It is expected that the Indian government keeps a share of production at home because they wil keep the inflation down .
3. Orange juice
By excessive rainfall, frost and invasive bacterial diseases, a large number of trees are affected and a large part of the harvest is destroyed .
Chocolate does not increase prices
Chocolate is one of the products whose prices have decreased. It is expected that the harvest in the Ivory Coast will continue to rise next year.
Prospects for the next years
When the bad weather and production shortfalls persists in the coming years, prices continue to rise. It can become a problem for people who do'nt earn much.