World: The cost of cereals in the world is growing

Representatives of FAO inform that the food price index of 2017 has increased, despite the fact that in the last month of the reporting period there was a decrease.

Speaking about December, the average index reached 152.7 points, which shows a slight decrease in comparison with the previous month. However, this indicator slightly exceeds the same figure of December 2016 by 7.4 points. The reason for the decrease in the cost of wheat was its large amount in the bins, and in addition, the decline in sales.

At the same time, in the international market corn prices increased due to unstable climatic conditions in Argentina, and the price of rice also continued to grow due to the steady demand in this type of crops, and also due to the stabilization of the exchange rates of the main countries that supply this crop to the international markets. In the middle of the last year, the price index for cereals reached 151.6 points, which is an increase by 3.2% compared to the same period of 2016, but it is 37% lower than the one that broke all records in 2011.

The world continues to increase the cost of grain, which affects the entire grain market. The main reasons for this growth are an increase in demand for grain from importing countries, a shortage of products on the world market, as well as unfavorable climatic conditions in a number of producing countries. This increase in the cost of grain may lead to an increase in the price of products containing grain, as well as to a change in the balance of grain exports and imports between countries.

For grain producers, this could mean higher revenues, but it could also mean higher production costs and lower profits due to higher seed and fertilizer prices. Consumers of products containing grains may also experience higher prices for these products.

However, such an increase in the cost of grain may stimulate an increase in grain production in those countries that were not active players in the world grain market before. It can also lead to a deeper study of the issues of increasing the yield and efficiency of grain production.

In general, the growth in the cost of grain is a complex and multifaceted problem that requires a comprehensive analysis and development of appropriate strategies and solutions.