4 January 2022 Global food prices have risen to their highest level since June 2011. Price rises are being driven by poor growing conditions in some production regions. Steep increases in logistics and fertiliser costs worldwide are also leading to higher prices. Favourable seasonal conditions have returned to much of Australia in 2020–21. This means Australian agricultural exporters are well placed to benefit from high international prices and tight global supply.
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Several countries have, or are considering, reducing tariffs or imposing export restrictions. This move aims to protect local consumers from rising and volatile food prices. Reduced tariffs make imported products, including products from Australia, more competitive. Export restrictions could further increase global food prices by reducing food supplies available for trade. Australian exporters should monitor announcements from trading partner governments to capitalise on emerging opportunities. The Food and Agriculture Organization of the United Nations (FAO) Food Price Index tracks the international prices of basket food commodities. Between January 2020 and November 2021, the index rose from 102.5 to 134.4 (+31.1%). Figure 1: Annual FAO Food Price Indices – Nominal (January 2000 to November 2021) Since January 2020, the price of every commodity in the FAO Food Price Index has increased. Poor seasonal conditions in several major production regions were behind this trend. Steep ...
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