The month of July saw a 10% increase in global food prices, and while this might be good news for farmers who have had a good harvest, it is bad news for the world’s poor who have to pay for their food. High temperatures and a severe drought in the US has resulted in a very poor harvest there, and a drought in parts of the former Soviet Union has also resulted in reduced harvests. The shortfall has led to increased prices.
According to the World Bank, during the month of July corn prices rose by 25%, wheat prices rose by 25%, soybean prices rose by 17%, and rice prices dropped by 4%. The World Bank’s Food Price Index, which is derived from current prices for a range of foods, was 1% higher than the previous maximum which had been reached in February 2011.
Countries which import food are likely to experience the biggest impact. The price of sorghum in South Sudan has increased by 220% in the past quarter, while the price of maize in Mozambique has increased 113% during the same period. At the moment, most countries which import food are hoping that growers in the southern hemisphere have a bumper crop in the current season in order to take the pressure off prices.