The rise in food prices has become one of the main reasons for the global surge in inflation in 2021, including the EU countries, the UK and Russia. Moreover, experts are confident that in 2022 food inflation will continue and even accelerate.

So, for example, it is expected that in Germany, after wholesale prices, retail prices will also increase. Among the key reasons for this is the global high cost of fuel and the rise in prices or even the shortage of fertilizers, which is partly due to high prices for hydrocarbons and other raw materials, and partly due to the protectionist measures of some large exporting countries. And the factors that are difficult to predict but extremely important for the world market of agricultural products, such as crop failures or the destruction of crops during natural disasters, which have become noticeably more frequent due to global climate change, can also affect.

Also, the rise in the world prices for food this year is due to the Russian-Ukrainian conflict. Such a forecast is contained in the quarterly report of the World Bank (WB) Commodity Markets Outlook. According to WB estimates, the cost of wheat will rise by more than 40% and reach record highs. In addition, the export of grain through the Black Sea routes dangerous now could provoke an increase in world prices, which will put serious pressure on developing countries dependent on imports of this agricultural crop.

According to the forecasts of the World Bank experts, the cost of food will increase by 22.9% this year and decrease by 10.4% next. In 2021, energy resources almost doubled in price, food - by 31%.

With the increase in prices for food products, one of the largest suppliers - Russia and Ukraine, and fertilizers have become the highest since 2008.

Commodities markets are currently experiencing one of the worst supply-side shocks in decades due to military action in Ukraine. Experts believe that the resulting increase in food prices will have humanitarian and economic consequences. Rising commodity prices will exacerbate already high price pressures around the world.

Experts also say that in practice, it does not happen that prices rise constantly. Instead, the market will find a balance point. Then, after a trend reversal, expected in 2023, a gradual decline in prices will occur.

Gateway Global is a wholesaler of grains, oilseeds and products. We grow excellent grain in our fields and produce high-quality products from it. Goods are purchased and supplied mainly to the countries in Asia and the Middle East. We have everything to provide a high-quality product: fertile soil, excellent climate, good seed fund, our own farms and factories and a team with an extensive experience in agriculture. In addition, we have warehouses that meet all the required conditions for the proper storage of all manufactured products. Another advantage of our company is the ability to carry out the transportation of goods across the territory of the CIS by road and rail.

For more information, please contact us info@ggm.sg