Prices around the world expected to increase
Global food prices are increasing for the first time since 2022.
Maximo Torrero Cullen is the chief economist with the Food and Agriculture Organization (FAO) of the United Nations. “The expectation is that prices will go into a plateau, and they will stabilize, but at a high level for one year or two.”
The latest FAO Food Price Index showed an increase of 0.6% for April, the first jump since record prices in March of 2022. The current FFPI is 127.2 points, up 0.8 points from March 2023, but down 31.2 points since last year.
Torrero Cullen tells Brownfield one issue is rice production because of higher fertilizer prices and an increase in planted acres. “Sub Saharan Africa is the first importer in the world of rice, so they are very, very sensitive to rice a lot more than to wheat or maize. That’s very worrisome at this point.”
He says other factors include lower sugar production in India, China, Thailand and European Union, uncertainty in the oil markets and strength of the US dollar.
Maximo Torrero Cullen, chief economist with FAO of the UN: