World Food Prices Highest Since July 2011, says UN Food Agency

Since 2011, world food prices are the highest according to the United Nation’s food agency.  Reduced wheat harvests by major exporters and high palm oil prices add up to the rise. 

“International prices of the basket of food commodities rose by 3% in October for a third straight month of increases”, said the Rome-based Food and Agriculture Organization (FAO). 

Major wheat exporters like Canada, Russia, and the United States reduced harvests, making wheat prices drive up by 5%, and the Vegetable Oil index climbed by 9.6% in October, which is an all-time high. FAO said – “Migrant workers shortages in Malaysia were a factor in that increase.” 

Italy being both – a major exporter as well as a consumer of pasta is fearful about the product’s prices that could increase in time for year-end holidays. The country imports 40% of its durum wheat from Canada (Italy’s principal supplier), to help produce its pasta. 

It is being said by the experts that the price of packaged pasta could jump up some 20 euro cents (24U.S. cents almost). This rise, for many popular brands, could be a 15-20% increase in a product that is consumed by Italians on a daily basis. 

From September to October, the Cereal Price Index of the agency rose by 3.2%. 

The FAO said that “Global Cereal inventories are seen heading for contraction in 2021/22”. This forecast is reflected towards cuts in the wheat production estimates in Iran, Turkey, and as well as the U.S. 

The rising food prices consumers are facing today are also a result of higher costs of energy and supply chain.