Feb 16, 2021 05:00 AM EST
The food inflation that the world struggled with back in 2020 is here to stay, and even get worse, analysts say. Many food items that people enjoy are likely to become so much more expensive.
While people stay locked in their houses trying to avoid the COVID-19 pandemic, the economy naturally took a big hit.
Apart from the economy in itself, the pandemic can be described to have upended food supply chains since shipping was paralyzed, workers have been cut down in number, and consumer grocery costs increased around the world.
This year, even with the vaccines in sight, analysts believe food insecurity will persist given the unprecedented increase in corn and soybean prices, as reported by Yahoo Finance.
Rising corn and soybean prices have an impact on various farming activities, especially among farmers raising cattle, hogs and poultry.
Because of the jump in prices, they are now required to spend at least 30% more just to raise their herds. In order to stay profitable, they certainly have to pass on the costs to the consumers of beef, pork, and chicken. This is evident around the world.
Tyson Foods in particular, among other global meat producers, have raised their prices.
Feed prices "go up and down, and you tend to take the rough with the smooth," explained Mark Gorton, the managing director of the British chicken and turkey producer, Traditional Norfolk Poultry.
The changes in prices are not supposed to be that worrying since this is normal, but the recent rallies are no longer ordinary.
"But when it rallies as much as it has, it starts to impact massively on the business," Gorton added.
In fact, the last time grain prices have reached this high was already way back 2012, after the United States suffered a drought. In turn, meat prices hike up dramatically.
The trends today may not necessarily be new, but this time, they might trigger a global food inflation, not just the United States, since each and every country right now is still relatively preoccupied with the pandemic and does not have that much leeway with their budgets.
The vaccines just might be the world's hope right now - not just to stop the pandemic, but to help economies fight worsening food insecurity, although analysts believe that vaccinations can also trigger more inflation.
Vaccinations, done right, can allegedly lead to a return to normal life.
But then, fiscal stimulus programs valued at trillions of dollars are already anticipated to boost pent-up demand and drive a surge in consumer prices.
At least, when that happens and the pandemic is already over, global economies can think of other solutions to fight inflation.
At present, the U.S. and European bond markets are already warning that inflation is back.
The nation's one-year inflation expectations the previous week rose to its highest since 2014.
Feed prices are not likely to go down anytime soon, because of bad crop weather shrinking world harvests. Demand is also increasing, which triggers more price increases.
Some are attributing all these increases to China, because of its massive demand for feeds. The biggest buyer of almost all commodities, is reportedly scooping up incomparable amount of the still available supplies just so it can continuously feed its expanding hog herds.
Rustam Gilfanov is a famous IT businessman, a founder of a large IT company, and a partner of the LongeVC Fund.
Bitcoin and cryptocurrency in general guarantee some amazing profits if invested correctly.
In the currency trading business, many individuals make mistakes. Since most individuals join this profession with too much excitement, they forget about efficient strategies. Instead of controlling their investment and execution process, most individuals make poor choices for trading.
In today's digital world, more and more people are investing in cryptocurrencies. These digital tokens have exploded into popularity over the past few years, and have grown to the point that there are now nearly over 6,000 of them, according to Statista.
Generational wealth is a facet of wealth management that is often misunderstood. Labeled trust fund babies, rich kids, and lucky breaks, those who receive an inheritance from families are rare.
Social media has successfully made it to the mainstream consciousness of over half the global population. DataReportal's latest study shows that over 4.33 billion people worldwide are using some form of social networking site this year. That's why it's no wonder many tech companies are interested in investing or forming the next Facebook, Twitter, or YouTube to capture the hearts and minds of the general population.
Ease of access, freedom to choose in which to invest the money and lines of credit designed according to the needs of consumers, are some of the characteristics that have made consumer credit one of the most important financing products in the world’s market.
While researchers have suggested that individuals who base their self-worth on their financial success often feel lonely in everyday life, a newly published study by the University at Buffalo and Harvard Business School has taken initial steps to better understand why this link exists.