According to newest Food and Agriculture Organization of the UN report food prices significantly rose in November. Costs of meat and vegetable oils increased the most.
In November global index of food costs reached the highest level in last 26 months. “Food basket“ containing cereals, oils, dairy, meat and sugar increased year-on-year in 9,5 %. The prices grew in 2,7 % from October.
Vegetable oil prices grew fastest with year-to-year increase in more than 10 %. In November meat cost increased in almost 5 % compared to its October price. Cost of dairy went up only slightly and additionally rice price decreased to its lowest in last half a year.
Especially meat cost increase is caused by two main reasons which can be joined in one. And that could cause more price increase in upcoming months. The already existing high demand on pork in China grew even more. The cause is African swine fever epidemic in China when a considerable amount of pigs had to be killed. The market lacks pork and China tends to cover it with import. Vegetable oil price increased due to growing demand on palm oil.