Fertilizer Prices Surge To Record High As World Food Supply Enters Perilous Times
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In October, global food prices continued climbing higher for the third straight month, hitting fresh decade highs, led by vegetable oils and cereals. Higher food costs contribute to more inflationary pressures for the working poor, central banks, and governments.
The UN's Food and Agriculture Organization's food price index, which tracks a basket of food commodities, averaged 133.2 in October, up 3.9 points (3%) from September and 31.8 points (31.3%) from October 2020. The index has risen three consecutive months and is now at a new decade high (could hit record highs in 2022).
The latest energy crunch has sent fertilizer prices sky-high and will increase food prices in 2022.
"The issue with the inputs and fertilizers and its implications for next year's crop is a concern," said Abdolreza Abbassian, a senior economist at the UN's Food and Agriculture Organization.
"By now, the market has factored in most of the supply and demand issues. But the market has by no means factored in next year's prospects in production,"
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