Commodities

Why are food prices going up? Global food retail prices remain high despite the grain deal

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Food prices are rising. Global food retail prices continue to remain high despite a grain deal to lift restrictions on Russian exports and fertilizer, as well as the removal of grain from Ukrainian ports. 

Why are food prices going up?

Words from Corinne Fleischer, the UN World Food Program (WFP) regional director for the Middle East and North Africa:

“The grain deal that facilitated the opening of ports in Ukraine was the best news for the world. Prices have come down on the world market, but unfortunately, because of the weakness of national currencies in some countries, food prices have barely changed because suppliers need dollars to import food,” Fleischer said.

According to her, residents of countries located in North Africa and the Middle East suffered most from the blockade of Ukrainian ports. This was due to the geographical proximity of these regions to the Black Sea. As a result, the level of poverty of citizens in these countries is now increasing, and local governments are unable to expand food support programs for the population.

On September 10, two ships carrying food from Ukraine arrived at their destinations. A dry cargo ship Ascanios, with more than 58 thousand tons of corn, reached the German port of Bracke, and a ship, Stella GS with 30.3 thousand tons of corn approached the port of Ashdod in Israel. Besides the Daytona Dynamic vessel with over 25 thousand tons of corn moored in a port in Turkish city of Nemrut, and vessel Sara with over 6 tons of wheat approached Tekirdag.Earlier, we reported that U.S. LNG exports to Europe opposed proposed EU restrictions on gas prices.

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