The UN Food and Agriculture Organization’s (FAO’s) monthly Food Price Index, issued June 7, reports that food prices were 39.7% higher in May 2021 than May 2020. Just from April to May this year, the Index rose 4.8%. The Index is composed of commonly traded items across all food groups—grains, meats, dairy, edible oils, produce, etc., and tracks monthly international changes.
The three groups whose prices have surged are cereals, sugar, and vegetable oils. In the cereals group, corn (maize) prices in May were 89.9% higher than May 2020. But all food groups are rising. The Dairy Price Index rose 28% from May 2020 to May 2021. As for the farmers and producers getting higher payments for their output, it is the exception, not the rule. Even the near-doubling of the price of corn from Spring 2020 to 2021, is offset by the inflation in the costs to the farmer to produce that corn.
