Financial Times writers Chelsea Bruce-Lockhart and Emiko Terazono reported this week that “the Cost of raw materials used in manufacturing staple foods for breakfast to have roars higher since the start of the pandemic – arouse fears than a large commodity boom could drive up global food prices for consumers.
Bulk contract prices for coffee, milk, sugar, wheat, oats and orange juice have jumped 28% on average from 2019 levels, according to trading in U.S. futures markets, where companies are blocking their investments. supplies or cover their exposure to raw material costs. For meat eaters, adding pork to this list pushes the average price up to 32 percent.
“The cost of raw ingredients is only part of the overall price paid for products at the supermarket or in restaurants, but substantial increases in costs have been made. likely to be passed on to consumers, analysts said.
The FT article noted, “Food inflation is real in many places. This is not going to go away anytime soon, “said Abdolreza Abbassian, Senior Economist at the Food and Agriculture Organization of the United Nations. In April, the FAO Real Food Price Index – which tracks a wide range of commodities – hit its highest level in a decade. “
“Wheat prices increased 16% since the start of last year, while corn has jumped over 60 percent. But was boosted by Chinese purchases, which in turn are fueling higher prices for alternative grains, including wheat. “
And Reuters writers Tom Polansek, Ana Mano and Agustin Geist reported this week that “Beef prices soar around the world, remove meat from the menu of Buenos Aires, which loves steaks and spoils summer barbecues in the United States like Chinese Imports Rise, Livestock Feed Costs Soar.
“Globally, the outbreak contributes to the highest food prices since 2014, according to the United Nations food agency, particularly hitting the poorest consumers as they struggle to recover from economic shutdowns triggered by the pandemic of COVID-19. “
The Reuters article noted that, “U.S. beef exports to China hit monthly record in March of 14,552 tonnes, according to the US Department of Agriculture, well above total shipments for all of 2019. A growing middle class in China makes room for beef in a diet that has long been pork-based. “
Also this week, Bloomberg writer Megan Durisin reported that,
Global grain stocks could become even thinner next season, exacerbating a tight supply in agricultural markets, already pushing up food prices.
“The International Grains Council has reduced its estimate of stocks for the 2021-22 season to 595 million tonnes, lowest in seven years, according to a report released Thursday. Growing demand for animal feed and a drought-stricken maize crop in Brazil outweigh bumper crops elsewhere, reduce the global grain supply cushion for a fifth consecutive season. “
Meanwhile, Bloomberg News reported this week that “the US Trade Representative Katherine tai and Chinese vice premier Liu He had a first “ frank ” conversation as the two sides attempt to resolve some of their differences over Trade.
“The heads of commerce spoke Thursday morning in Beijing, said the Chinese Ministry of Commerce in a statement, and” conducted frank, pragmatic and constructive exchanges in an attitude of equality and mutual respect. “
“In a separate statement, the USTR said that ‘Ambassador Tai discussed the guiding principles of the worker-centered trade policy of the Biden-Harris administration and its ongoing review of interstate trade relations. United and China, while also raising concerns. ‘ ‘
And Reuters writers Xu Jing, Stella Qiu and Ryan Woo reported this week that “China and US should work together to push for implementation of Phase 1 trade deal, spokesperson for the Ministry of Commerce Gao Feng said Thursday at a press conference.
“Gao’s comments followed the first virtual call between Chinese Vice Premier Liu He and US Trade Representative Katherine Tai.”