Russia: The rise in the cost of food will turn into a food crisis

Published 2021년 10월 7일

Tridge summary

The year 2021 has brought a host of weather challenges and a significant increase in food prices due to various factors including energy price hikes, national economies struggling from the pandemic, and adverse weather conditions impacting crop production. The United Nations' Food and Agriculture Organization revised its global grain production forecast down by 29.3 million tons due to droughts in several countries, leading to a 3.1% increase in world average crop prices in August alone. The situation is expected to worsen, with food prices already at a 60-year high and experts warning of a potential food crisis due to rising fertilizer prices and a predicted decrease in sown areas for a specific crop in 2022. Additionally, high gas prices are causing a domino effect, affecting the prices of corn, feed, and meat. Western and Russian analysts agree that farmers are likely to face profit challenges, particularly in the sale of grain, milk, and meat, as manufacturing costs continue to rise.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

2021 will be remembered for all weather anomalies and a sharp jump in food prices. Probably, this year there is no country in which a hurricane has not swept, torrential rains with hail have not passed, or the crops have been destroyed by too hot weather. Europe and China have experienced large-scale floods, Russia - drought and volley rains, Canada and the United States - an unprecedented drought. To these problems were added others: the rise in prices for energy resources, higher costs and a decrease in the profitability of the agribusiness as a whole. In addition, national economies have not yet recovered from the coronavirus crisis. Therefore, it is obvious that food products and agricultural raw materials will only rise in price, and at an accelerated pace. Surprisingly, for the first time, Western and Russian analysts expressed the same opinion: farmers will not be able to make large profits from the sale of grain, milk and meat. Manufacturing costs are rising as fast as ...
Source: Agroxxi

Would you like more in-depth insights?

Gain access to detailed market analysis tailored to your business needs.
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.