Global Food Prices Increases During September
According to the United Nations’ Food and Agriculture Organization, global food prices saw an increase during September to the highest level in six months as meat and dairy producers passed the higher feed costs to the consumers.
The FAO tracked 55 food items and noted that the index was to 215.8 points, up three points from 212.8 in August. Dairy costs increased the most in over two years.
According to FAO economist Abdolreza Abbassian, dairy farmers and livestock breeders are passing the costs of the higher feed to consumers after grain prices increased in June and July. He said there is no immediate food crisis even with the higher prices.
Although the market is difficult right now, the rudiments are not there to suggest there is a food crisis. Rather, he said, the market looks at the high prices as a rule, not an exception.
The dairy-price index jumped to 187.7 points up from August’s 175.6 points. It’s the biggest gains since April 2010. The price of meat increased to 175 points. Grains prices also saw a 17 percent increase; it’s biggest increase since February 2008.
Abbassian said the FAO expected the increases in both dairy and meat. Of course, how much it goes up before consumers begin to reduce their consumption still remains to be seen.
Higher food costs were a contributing factor to the civil unrest in many regions including North Africa and the Middle East. It even led to the toppling of the Egyptian and Tunisian governments. According to the U.S. State Department, increases in food prices led to over 60 riots between 2007 and 2009.
Online News Heard Now
Image courtesy of digitalart / FreeDigitalPhotos.net
Short URL: http://www.onlinenewsheardnow.com/?p=1297
Posted by