FAO: "Food prices will remain high"

Global food prices rose last year to their highest level in a decade. According to the FAO, the Food and Agriculture Organisation of the United Nations, there is little hope of a turnaround in 2022.

Threat

In 2021, the prices of staple foods rose by an average of 28 %, despite a slight drop in December. Prices have never been as high as today since 2011, and the FAO points out that these high food prices (and, more broadly, rising inflation) pose a real threat to poorer populations in import-dependent countries.

The UN organisation also does not expect the price pressure to abate soon: “The high cost of inputs, ongoing global pandemic and ever more uncertain climatic conditions leave little room for optimism about a return to more stable market conditions even in 2022”, the FAO’s Abdolreza Abbassian said. The price of fertilisers, in particular, have risen sharply under the influence of rising energy prices, Reuters reports.

However, in December, a slight decrease in prices occurred: with the exception of dairy products, almost all food categories became cheaper. Vegetable oils and sugar took the biggest plunge. The UN agency highlights concerns about the impact of the Omicron variant of the coronavirus as the primary cause.