Currently, the situation with food market prices indicates that the food crisis has already occurred, and its consequences will worsen and affect the whole world.
According to historical data from the World Bank, we currently see the following situation in major food markets:
Oil:
Palm oil prices reached a historically high price level in March this year. Currently, 28% increase from the beginning of the year (from January to May 2022), and more than 50% increase compared to the same period last year (May 2021 to May 2022).
Soybean oil, in May, recorded a record historic price, which increased by 34% since the beginning of the year, and by 25% compared to last year.
Rapeseed oil – a record historical price in May (+ 19% since the beginning of the year), and 45% price increase compared to the last year.
Sunflower oil – reached historical price in March this year (+ 19% since the beginning of the year), more than 31% growth compared to the last year.
Cereals:
Soft and Hard wheat reached historical prices in April and May, respectively.
Soft wheat has risen in price by 96% since the beginning of the year and by 140% compared to May 2021. Hard wheat prices, in turn, increased by 40% since the beginning of the year and by 76% yearly.
Corn – reached the historical value of the price in May with an increase of + 25% since the beginning of the year.
Meat:
The chicken price reached a historical price level in May. From the beginning of the year the price increased by 29%, and during the year the price increased by 56%.
Beef – a historic price record reached in March (+ 11% annual growth).
We have record price values for 72 years of statistics. The deficit of Ukrainian export positions due to military aggression and blockade of ports causes an increase in demand for alternative positions, which in turn provokes a cascading effect of rising prices in the food market.
This is a critical situation, especially for developing countries. The World Food Program estimates that the number of people with severe food instability has doubled from 135 million to 276 million in just two years (from 2019 to 2021). However, it is expected that the consequences of Russia’s military aggression against Ukraine will lead to 323-400 million in 2022 alone. The food crisis and famine have already set in and we can only fight to minimize the consequences. The decisive factor for this will be the stabilization of the situation in Ukraine.
Follow us on Facebook, Twitter, LinkedIn, or YouTube .
