InternationalInternational Economics

Sharp rise in food prices in 2021 / up to 65% increase in world prices for wheat, animal feed and oilseeds


According to Fars News Agency’s International Economics Group, the United Nations announced today: The food price index, which is tracked monthly, has reached an average of 125.7 units, which shows a growth of 28.1% compared to 2020.

Abdolreza Abbasian, chief economist at the World Food Organization (FAO), said: “Under normal circumstances, we expected prices to fall due to increased production and being commensurate with demand, but this did not happen.” Currently, rising production costs as well as the prevalence of Covid-19 disease and highly volatile weather conditions have shattered our forecasts and what we previously thought would be sustainable conditions in 2022 has not materialized.

According to the report, in the last month of this year, the world food price fell, so that the world price of vegetable oil and sugar fell more, but they are growing compared to last year.

According to statistics, the average food price index decreased by 0.9 percent compared to November, but still grew by 23.1 percent compared to the same period last year.

* Growth of up to 44% in cereals, wheat and corn

According to the statistics, the monthly grain price index decreased by 0.6 percent, but last year reached the highest annual figure since 2012 and recorded a growth of 27.2 percent. Corn was the most important grain, which increased by 44.1 percent and wheat by 31.3 percent. Last year, rice lost 4% of its value.

* 65% growth in world oil prices in the past year

The oil price index fell 3.3 percent in December, largely due to lower demand, and of course the prevalence of Covid 19 also affected demand as it disrupted the supply chain.

But during the year, the oil price index reached the highest price in history and recorded a growth of 65.8% compared to 2020, but sugar decreased by 3.1% compared to the previous month and reached the lowest price in the last 5 months. FAO analysts say the figures raise concerns about the spread of the new Omicron strain in global demand.

* 30% growth in world sugar prices

According to these statistics, the annual price survey shows that the sugar price index has grown by 29.8% and has reached the highest figure since 2016.

* Meat and cheese grew by 12.7% in the last year

According to the FAO, the meat price index in December was somewhat stable, but compared to the same period last year was 12.7 percent. Dairy was the only product in the group to rise in price last month, growing 1.8 percent in November, largely due to declining milk production in Western Europe and Oceania.

Cheese prices also fell last month, but rose 16.9 percent from a year earlier, the most since 2020.

The spread of new strains of the corona has disrupted the supply of food and agricultural products and disrupted the supply chain. On the other hand, in such a situation, countries have given priority to meeting domestic needs and are reluctant to export, such as Russia. Agriculture has doubled and four countries have banned the export of urea fertilizer.

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