Commodities Shuttle: Food prices have been higher since 1975, according to FAO

World food prices rose again last month, surpassing the average level of October by 1.2%. With that, the accumulated increase in 12 months is 27.3%.

The data are from the Food Price Index of the FAO (United Nations Food and Agriculture Organization).

The successive increases make 2021 record the highest food prices, in real terms, since 1975, based on this FAO indicator.

Two items are largely responsible for 2021: vegetable oils and sugar. In the first case, the increase accumulated in 12 months is 51.4%. Higher world demand and lower supply in South America and Asia boosted prices.

Sugar, on the other hand, due to the crop failure in Brazil and the world deficit, became 38% more expensive in the last 12 months. The FAO also registered an accumulated increase of 23% in cereals, 18% in meat and 19% in the dairy sector.

These increases to consumers are a reflection of prices in the countryside. According to the Amis (Agricultural Market Information System), the world average evolution of the main commodities (wheat, rice, corn and soy) is 16.2% in the last 12 months. The highlight is wheat, which was 43% more expensive in the period.

Complications in the corn crop in Brazil and in other countries that produce this commodity forced a 16.1% increase in the cereal worldwide during this period. Soybeans had an evolution of 4.5%, and rice fell 11%.

Field prices in Brazil follow the international pace, with intense increases, with the exception of rice, which is falling.

At the end of November, the accumulated leadership in domestic prices was with sugar, 42% more expensive than a year ago. Wheat rose 21% and corn 10%.

The price of cattle, which had been registering one of the main highs in the year, lost strength after the interruption in the purchase of beef by the Chinese, starting in September.

Even without China in the Brazilian market, however, arroba prices rose again and exceeded R$320, due to the reduction in the supply of animals for slaughter. In the last 12 months, the accumulated evolution of prices is 18%.

High internal and external prices reflect on the inflation of national consumers. This Thursday (2), Fipe (Institute for Economic Research) announced that the accumulated rate of food products is 11% in 12 months.

That pressure, however, is starting to ease. The prices of some foods have stopped rising, although they are still at high levels. In November, food prices retreated 0.15%, the first monthly drop since February.

food method Consumers who are turning to cassava and corn flour as a food supplement are paying 11% and 19% more, respectively, for these products in the last 12 months. Wheat flour rose 9%, according to Fipe.

the weight of agro Even without focusing exclusively on agribusiness, Komatsu is benefiting from the good evolution of the sector in recent years. Agribusiness already represents 30% of company sales.

Support Focused on the construction, mining and forestry areas, Komatsu does not work directly in the agricultural production sector, but supports farmers in maintaining the property’s infrastructure.

Support 2 Agricultural properties are increasingly in need of wheel loaders, motor graders, excavators and other equipment for the agribusiness, says Luciano do Amaral Rocha, vice president for equipment at the company.