Food Prices Fell Again In July, Says UN Agency
Image Source: Reuters
The UN tracks the most globally traded food commodities through its world food price index. The index hit a record high in March and has been gradually dropping since. In July, vegetable oil, sugar, dairy, meat, wheat, and corn prices all fell month-over-month, partly due to a deal reached between the UN, Ukraine, Russia, and Turkey to unblock grain exports from the Black Sea. While lower food prices are welcome, the July numbers are still 13.1% higher than a year earlier, and consumers are still reeling from higher-than-normal food costs.
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Sacrebleu! Dijon Mustard Shortage Sparks French Food Crisis
Image Source: Maurice Rougemont/Getty Images
The French consume more mustard than anyone else in the world, and the condiment is a staple of the cuisine, served with everything from steak to salad. But for months, the shelves have been empty, driving French consumers to look for mustard in odd places such as Facebook Marketplace. The cause? Climate change. About 80% of the brown mustard seeds used to make Dijon mustard come from Canada, where suppliers are struggling to meet demand. As a result, retail prices are up about 25% in France. US consumers do not appear to be affected by the shortage, mostly because US demand for mustard is not as great.
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USDA Allocates $2.1 Billion To Strengthen US Food System
Image Source: Bloomberg/Getty Images
The pandemic, climate change, and the Ukraine war exposed some cracks in the US food supply chain. To wit: skyrocketing food prices and chronic shortages. To help shield us from future shocks, the USDA is pumping more than $2.1 billion into shoring up our food system, including $900 million for food processing worker training and supply-chain infrastructure, $550 million for developing small regional food businesses and reducing food waste, $375 million for organic and urban agriculture projects, and $370 million to boost public access to healthy food. Bring it on, monkeypox. We'll be ready for you.
Inside The Infant Formula Shortage
Image Source: Getty Images
A massive recall back in February gets blamed for the current baby formula shortage. But economics experts say the industry has long been vulnerable because 98% of the US supply is manufactured domestically, and most of it by only four companies. Perfectly good and safe formula is available around the world, but we can't access it due to decades-old laws preventing an import infrastructure. The US is nearing an agreement to fly in 1.25 million cans of formula from Australia, but in the meantime rich parents are tapping into the black market.
As Food Prices Hit 40-Year High, USDA Forecasts Remainder Of 2022
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Grocery bills have been rising for months. Avocado prices, in particular, have hit a 24-year high as demand soars above supply. The continued Ukraine war has also exacerbated supply chain issues as countries impose trade restrictions to protect dwindling supplies of grains and other goods. For example, vegetable oil prices are up 22% because production is down in Ukraine and Russia, which together account for 60% of world production of sunflower oil. What to expect for the rest of the year? According to the USDA, grocery prices will increase between 3 and 4% and the cost of eating out will jump between 5.5 and 6.5% in the remainder of 2022. Tighten your belts.
Ukraine War Jacks Up Global Food Prices
Image Source: Reuters/Luis Cortes
Food prices jumped 20.7% worldwide last year, a record high, according to the UN's food agency. The Ukraine war is likely to cause another 22% surge, says the agency. Russia and Ukraine supply one-third of the global trade in grains, which account for 40% of calories consumed globally. As grain supplies tighten, trade restrictions will raise international prices even higher, all of which threatens to send world hunger to unprecedented levels. Food insecurity worldwide has doubled in the past two years, and 45 million people are already estimated to be on the brink of famine. Thanks, Vlad.
