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According to statistics released by the Rome-based FAO in early January of this year, wholesale prices of wheat, corn, oilseeds, dairy products, sugar, and meat rose to 214.7 points in December 2010, up 4.2% from November last year. This is the largest increase in the FAO Food Price Index since 1990. During the global food crisis from 2007 to 2008, the food price index reached a record high of 213.5 points in June 2008.
FAO officials pointed out that although sugar, oilseeds, and meat are the main reasons for the rise in the price index, the price of wheat and other crops is also an important factor in pushing up the food price index. The fires and droughts in Russia and Eastern Europe have led to a significant drop in food production in these countries and regions in 2010. Australia, the world’s fourth-largest wheat exporter, is currently experiencing rare historical floods that will reduce Australian wheat production and further boost global wheat prices. . Russia, Ukraine, and other countries recently announced restrictions on the export of wheat and other foods, resulting in large purchases and hoarding of wheat by importers of grain in the Middle East and North Africa, which in turn exacerbated the rising global food prices. In addition, as most agricultural products are mainly denominated in U.S. dollars, the continued weakness of the U.S. dollar has also contributed to soaring food prices.
According to Mossau, director of policy at the Oakland Institute based in San Francisco, similar to the situation in 2008, a number of factors have contributed to the rise in food prices: a poor harvest in one part of the world, a tight food supply market, and speculation. Those who took the opportunity to purchase large quantities of food. At the same time, rising oil prices have also led to more crops being used to make biofuels such as ethanol, which in turn has caused food prices to rise.
Rob Woos, an official with the UN Department of Economic and Social Affairs, said high food prices have hit many developing countries. Affected by high food prices and rising energy prices, some countries, such as India, East Asia and South Asia, are facing double-digit inflation. In Bolivia, the rise in world food market prices has recently forced the government to reduce consumer subsidies for fear of excessive fiscal deficits. In the short term, not only the poor are severely affected, but more people will fall into poverty. High food prices will also cause many developed countries to face high inflation pressures, which will hinder the global economic recovery.
World Bank President Zoellick warned on a few days ago that rising food prices are a threat to global economic growth and social stability. French President Nicolas Sarkozy also said that the issue of high food prices and food security will become the main topic of the G20 Summit this year.
Central banks in some countries are implementing tightening monetary policies, and the government is also forced to tighten fiscal policies. Last September, riots broke out in Mozambique in Africa due to the high price of bread, killing 13 people. Rising food costs have also hit developed countries. McDonald's and Kraft have all increased their retail prices. In Europe, rising food prices have exacerbated inflation, and current European inflation has been higher than the European Central Bank's propensity to target. The most vulnerable countries are those that are most dependent on food imports and have low capacity to handle high food prices. In the global food crisis in 2008, the Philippines was one of the most affected countries at the time. The soaring price of rice has caused tens of thousands of people to march to the streets to demonstrate.
The UN Food and Agriculture Organisation’s senior economist Absanzian said that the current global food price situation has not yet triggered a global food crisis, but this upward trend has been alarming. “The idea that food prices have reached a peak is very high. stupid". The FAO official warned that the prices of rice, wheat, sugar, meat, etc. will remain high in 2011 and increase significantly, and may even lead to a repeat of the 2008 food crisis. Moosio of the Auckland Institute also stated that once a major climate disaster in another food exporting country or a further increase in oil prices will make the global food security situation even worse than in 2008, it threatens billions of people in the world. livelihood. Mu said, “In 2008, food riots and social unrest occurred in 30 countries and regions. Since the situation of soaring food prices has not changed in the past three years, the riots that occurred in 2008 may repeat itself.â€
Global food prices threaten social stability
In recent days, as the world’s crude oil prices continue to rise, global wheat prices continue to soar, and the world may once again stage a warning about food crises due to the poor wheat harvests in Russia, Eastern Europe and other places, coupled with rare historical floods in major food-producing countries such as Australia and Brazil. Followed by.