Global Food Prices Reached New 10-Year High
- Global food prices hit the highest level in over a decade.
- Vegetable oil prices rose by almost 10% in October.
- Labour shortages helping to push up the cost of production.
According to the United Nations Food and Agriculture Organization (FAO), global food prices have hit the highest level in over a decade after rising by more than 30% in the last year. The findings from the agency showed the worldwide rise in the cost of grains and vegetable oils. Following an almost 10% increase in October, vegetable oil prices reached a new high. Supply disruptions, high commodity costs, manufacturing closures, and political tensions are all contributing to price increases.
In comparison to a year before, the FAO’s gauge of cereal prices went up by more than 22%. Wheat prices have risen over 40% in the last year as a result of bad harvests in key exporters such as Canada, Russia, and the United States.
The FAO claimed that increases in the cost of palm, soy, sunflower, and rapeseed oils pushed up its index of vegetable oil prices. Prices for palm oil have risen as supply from Malaysia has been “subdued” due to chronic migrant labour shortages, according to the FAO.
Labor shortages are also contributing to rising food production and transportation costs in other parts of the world. Milk prices have risen about 16 percent in the last year as a result of shipping problems. This has a particularly negative impact on countries that rely heavily on food imports.