In early January, the U.N. Food and Agriculture Organization (FAO) reported that its Food Price Index had reached an all-time high in December, exceeding the previous record set during the 2007-08 price surge. Even more alarming, on Feb. 3, the FAO announced that the December record had been broken in January as prices climbed an additional 3 percent.
Will this rise in food prices continue in the months ahead? In all likelihood, we will see further rises that will take the world into uncharted territory in the relationship between food prices and political stability.
Everything now depends on this year’s harvest. Lowering food prices to a more comfortable level will require a bumper grain harvest, one much larger than the record harvest of 2008 that combined with the economic recession to end the 2007-08 grain price climb.