15 May, 2018 Resources
How global trends influence food pricesDownload the Document
Generally, worldwide food prices stabilised in 2017, having been exceptionally high before. For example, sugar prices, always volatile, fell sharply in 2017 after steep rises in the previous year, partly because European Union sugar quotas ended. Rising demand in the EU and China, plus reduced beef production in Oceania caused global meat prices to rise in 2017.
Strengths and weaknesses
In 2018, Coface analysts expect global food price rises to become a long-term trend, driven by increasing demand from emerging nations – especially China and India. Another factor is changing culinary culture in emerging Asian countries, with increasing demand for cereals and dairy produce. The sector’s main threats are climatic fluctuations, such as extreme weather events. Political factors also have impact, such as the Russian embargo on food products from the USA and EU. In the main consumer countries, rising food prices are also likely to cause a fall in purchasing power.
Similar to last quarter, the uncertainties surrounding the forecasts presented in this barometer are very high. They are primarily linked to the global health situation: since June, the pandemic has continued to gain momentum.
01 October, 2020
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