Crisis causes sharpest jump in global food prices in two years
March 20, 2014
Geopolitical tensions in Ukraine, one of the world’s largest grain producers, have triggered the sharpest climb in global food prices over the last two years, the Vedomosti news agency reports, citing the March report of Food and Agriculture Organization of the United Nations (FAO).
In February, the food price index increased 2.6%, reaching 208,1 points on a y-o-y basis, the FAO reported, stating that the change in price dynamics for wheat and maize was the main reason for the increase. The index had been on a downward trend since year 2011.
FAO officials are not yet calling what has happened a “trend break,” although they do argue with some degree of caution that natural factors could be supporting sugar and wheat prices, while an increase in demand is likely to support maize, dairy and oil prices.
According to the FAO forecast, global grain output in 2014 could slip 1.7% from its 2013 level even as the crop volume—704mn tonnes—becomes the second largest in history.
Before the crisis in Ukraine, the US Department of Agriculture (USDA) had been predicting that Ukraine would become fifth in the world for wheat exports and third for maize exports. Ukraine’s wheat, 10% of exports traditionally ship through Crimean ports.
Source:
economics.unian.net
Tags: export, food
Ukraine
