Food has never been more expensive – prices driven up by the pandemic

“The pandemic-induced crisis has completely changed the psychology of the market, which has led to higher food prices, the highest in the last ten years,” agro-economic analyst Zarko Galetin told Radio and Television of Serbia (RTS).

Galetin also said that, in 2021, the wheat yield would be rather modest, although the drought has done little damage to the crops. “We can expect about the same yield as last year, between 4.8 and 5 tonnes per hectare,” Galetin said and added that wheat yield would meet domestic needs.

As for barley, the industry expert points out that the yield is better than last year because the weather has been good throughout the growing season. “The harvest is not ready, but we have seven or more tonnes per hectare of yield in certain areas which is record-breaking,” Galetin said.

He notes that the crisis caused by COVID-19 has completely changed the psychology of the market.

“We had a stable year in terms of product balance, but what happened was that this and last year were years of high prices for no real reason. The FAO index is 127 points, the highest since 2011. Looking at the essential market drivers, there were not many reasons for such high prices. The uncertainty brought by the health crisis, especially the big importers who feared that they would not have enough food and that demand would be aggressive for psychological reasons is probably the reason. This led to nervousness in the market and now we are consuming the most expensive food in the last 10 years,” Galetin concluded.

(N1, 05.07.2021)


This post is also available in: Italiano

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *

scroll to top