BAKU, Azerbaijan, August 20. The global wheat consumption has reached its lowest annual level in decades, Trend reports.
According to forecasts, from July through December this year, the consumption will decrease by five-eight percent compared to the same period in 2021. The UK and EU farmers noted that due to the ongoing drought, prices for milk, bread, and meat will rise in the coming months.
As a result of difficulties that appeared due to climate in India, many countries in the Middle East and Africa have faced serious difficulties in importing grain.
Difficulties with transportation and supply chains have made food transportation costly. For example, last year the transportation of one ton of wheat through the Black Sea cost $300, and now it has already reached $400-410. In Indonesia, the world's second-largest buyer of wheat, one kilogram of wheat flour, which cost 8,200 rupees (55 cents) a year ago, now amounts to 10,000 rupees (67.2 cents).
According to economists, it’s necessary to be prepared for ever-rising food prices, the Financial Times newspaper said.
Azerbaijani MP, economist Vugar Bayramov, commenting on the issue, noted that according to the forecasts of the UN and international financial institutions, the food supply will decrease until 2025 against the backdrop of an increase in demand for it in a number of countries.
“Wheat consumption is decreasing especially due to a decrease in supply. So, a decrease in demand for wheat takes place in a number of developing countries against the backdrop of an increase in demand for it and prices. The latest trend indicates that in the coming years, especially in 2023, we’ll observe an increase in prices in the global food market,” Bayramov noted.
“The price of wheat is also rising. The world is actually preparing for higher food prices. The most important issue for countries today is to meet the demand for food, including wheat, through local production. For Azerbaijan, this is also a priority. Naturally, this takes time. In the coming years, demand for wheat will be met more due to local production," concluded the expert.