Severe Droughts Drive Food Prices Higher-World Bank
Global food prices soared by 10 percent in July from a month ago, with maize and soybean reaching all-time peaks due to an unprecedented summer of droughts and high temperatures in both the United States and Eastern Europe, according to the World Bank Group’s latest Food Price Watch report.
Source : https://www.marocafrik.com/english/Severe-Droughts...
Food prices rose again sharply threatening the health and well-being of millions of people,” said World Bank Group President Jim Yong Kim. “Africa and the Middle East are particularly vulnerable, but so are people in other countries where the prices of grains have gone up abruptly.”
The abrupt food price increases turned favorable price prospects for the year upside down. World Bank experts do not currently foresee a repeat of 2008; however, negative factors -- such as exporters pursuing panic policies, a severe El Nino, disappointing Southern hemisphere crops, or strong increases in energy prices -- could cause significant further grain prices hikes such as those experienced four years ago.
The bank warned countries importing grains will be particularly vulnerable and urged protection measuresfor the poorest in society to prevent increased poverty.
From June to July this year, corn and wheat prices each rose by 25% while soybean prices increased by 17%, the World Bank said. Only rice prices decreased - by 4%.
Countries in North and Sub-Saharan Africa and the Middle East were among those most exposed to such price increases because much of their food was imported and food bills make up a large proportion of average household spending. The report follows earlier warnings of cereal crop failures.
The abrupt food price increases turned favorable price prospects for the year upside down. World Bank experts do not currently foresee a repeat of 2008; however, negative factors -- such as exporters pursuing panic policies, a severe El Nino, disappointing Southern hemisphere crops, or strong increases in energy prices -- could cause significant further grain prices hikes such as those experienced four years ago.
The bank warned countries importing grains will be particularly vulnerable and urged protection measuresfor the poorest in society to prevent increased poverty.
From June to July this year, corn and wheat prices each rose by 25% while soybean prices increased by 17%, the World Bank said. Only rice prices decreased - by 4%.
Countries in North and Sub-Saharan Africa and the Middle East were among those most exposed to such price increases because much of their food was imported and food bills make up a large proportion of average household spending. The report follows earlier warnings of cereal crop failures.
Source : https://www.marocafrik.com/english/Severe-Droughts...