Global Food Prices Hit Record Highs In February, According To FAO

According to the latest figures released by the Food and Agriculture Organization of the United Nations (FAO), the global food price index hit a record high in February, rising by 3.9% and 20.7% year-on-year respectively, mainly driven by the increase in the price index of vegetable oil and dairy products. The group warned that because the index was calculated before the outbreak of the Russian-Ukrainian war, it is almost certain that global food prices will only be higher in March. A few points must be understood here, in the global edible vegetable oil market, sunflower oil accounts for 15% of the overall market, and the rest includes palm oil, soybean oil and rapeseed. Among sunflower oil, Ukraine accounts for half of the world's production, and Russia accounts for 30%. According to the USDA’s 2021 figures, Russia, together with Ukraine, will account for 28.5% of the world’s total wheat exports and 19% of the world’s total corn exports.