World Food Prices Up 39% over Last Year, Reports FAO Food Price Index
June 8, 2021 (EIRNS)—The monthly FAO Food Price Index of the UN Food and Agriculture Organization, issued June 3, reports that food prices were 39.7% higher in May 2021 over May 2020. Just from April to May this year, the index rose 4.8%. The index is composed of commonly traded items across all food groups—grains, dairy, vegetable oils, meats, and sugar, and tracks monthly international changes.
The three groups whose prices have surged are cereals, sugar, and vegetable oils. In the cereals group, corn (maize) prices in May were 89.9% higher than May 2020. But all food groups are rising. The Dairy Price Index rose 28% from May 2020 to May 2021. As for the farmers and producers getting higher payments for their output, it is the exception, not the rule. Even the near-doubling of the price of corn from spring 2020 to 2021 is offset by the inflation in costs to the farmer to produce that corn.
There has not been, fortunately, one gigantic weather disaster or crop failure accounting for this dramatic and devastating food price escalation. Rather, it is part of the overall picture of hyperinflation, from the money-pumping policies of the trans-Atlantic central banks. Additional features include the wild speculation on the Chicago Board of Trade—reaching the trading limit (in size of up or down price swings) in food commodity transactions on many days.
The collaboration among major nations could succeed easily to stop the inflationary monetary policies, outlaw the speculation, provide credit for plentiful food, and a steady, parity-based price for farm producers. Anti-trust against the Big Food cartels is essential.