Crisis in global food market - prices are rising - Analysis

BAKU, Azerbaijan, January 7

Trend:

The maximum permissible prices for flour and bread have been determined in Azerbaijan today.

The wholesale price of a 50-kilogram bag of flour is set to 35.9 manat, the retail price of 500 gram traditional (round) bread is 0.5 manat, 650 gram traditional (round) bread is 0.65 manat.

The global economic processes, the COVID-19 pandemic impact, the growth of demand for food wheat in world markets during 2021, as well as various protectionist measures taken by wheat-producing countries in order to protect the domestic market result in the sharp rise of prices for food wheat prices.

A sharp increase in food prices is observed in various countries of the world. The wheat price in Germany increased by 33 percent in 2021 compared to 2020, in Romania this figure is even higher - 33.70 percent. In Turkey, food prices rose by 27.11 percent.

The price of grain in Turkey for 2021 was set at 2.450 Turkish Lira ($196) per ton, currently, it is 3.720 Turkish Lira ($297) per ton. The price for durum wheat increased from 285 to 420 euros per ton in Spain, while in Croatia there is an increase of 53 percent.

The growth rates, mentioned above, are not the highest: wheat price increased by 210 percent over the specified period in Greece, an increase by 51 percent recorded in Canada, grain price increased by 39.3 percent in 2021 compared to 2020 in Kyrgyzstan.

The following table shows the indicators of the growth of food price in various countries:

2022 will be remembered by the world as a post-pandemic year as the trends observed in the world indicate that the price increase is inevitable due to the growing demand and decrease in the production of grain, food, and other essential products.