BREAKING: World food prices hit three-year record in 2020

US, NEW YORK (ORDO NEWS) — World prices for basic food and raw materials in 2020 were the highest in the last three years. This was announced on Thursday by the Food and Agriculture Organization of the United Nations (FAO) based on data from the FAO Food Price Index, which reflects monthly changes in international prices for major foods.

This figure rose to 107.5 points in December, up 2.2% compared to November, when the index was recorded at the highest level in almost six years. The average for the 2020 index is 3.1% higher compared to 2019. However, as indicated in the FAO report, it is 25% lower than the historical record index recorded in 2011.

Specifically, the FAO Vegetable Oil Price Index increased 4.7% in December, the highest since September 2012. The grain price index also continued to grow, increasing by 1.1% compared to November and by 6.6% compared to the average level in 2019. As FAO experts explain, the upward trend in export prices for wheat, corn and rice is dictated by uncertainty about the projected high yields and weather conditions in the Americas, as well as in Russia. The price index for dairy products, which increased by 3.2% in December compared to November, has been increasing for seven months in a row due to increased demand against the background of high domestic consumption of this type of product in producing countries.

FAO is reluctant to link the rise in food prices solely to the pandemic, which has mainly led to some disruptions and delays in supplies. According to experts, price dynamics depends on the ratio of supply and demand.

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