ROME: World food prices rose for a ninth consecutive month in February, hitting their highest level since July 2014, led by jumps in sugar and vegetable oils, the United Nations food agency said on Thursday.
The Food and Agriculture Organization’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 116.0 points last month versus a slightly revised 113.2 in January.
The January figure was previously given as 113.3.
The Rome-based FAO also said in a statement that worldwide cereal harvests remained on course to hit an annual record in 2020, adding that early indications pointed to a further increase in production this year.
FAO’s cereal price index climbed 1.2 percent month on month in February. Among major coarse grains, sorghum prices increased the most, rising 17.4 percent on the month and 82.1 percent year on year, driven by strong demand from China.
Maize and rice prices edged up while wheat export prices remained largely stable, FAO said.
Sugar prices climbed 6.4 percent month on month amid concerns over supplies in 2020/21 because of production falls in major producing countries and strong demand from Asia.
The vegetable oil price index increased 6.2 percent to reach its highest level since April 2012, with palm oil prices rising for a ninth month, lifted by worries over low inventories in major exporting nations.
Dairy prices rose 1.7 percent, while the meat index posted a modest 0.6 percent gain. FAO said pig meat quotations fell, hit by reduced purchases from China amid heavy oversupply and a rise in unsold pigs in Germany due to a ban on exports to Asian markets.
FAO raised its forecast for the 2020 cereal season to 2.761 billion tons from an estimate of 2.744 billion made last month pointing to a 1.9 percent increase year on year.
That revision reflected a 7.5 million ton increase in the world wheat production estimate, driven by recently released official data from Australia, the European Union, Kazakhstan and Russia.
The forecast for global rice production was also raised by 2.6 million tons from last month on more buoyant production forecasts from India.
FAO raised its forecast for global cereal stocks ending in 2021 by 9 million tons to 811 million which would represent a 0.9 percent decline year on year.
“Looking ahead, current indications suggest a small rise in world cereal production in 2021,” FAO said.
“While most of the wheat crop in the northern hemisphere is still dormant and southern hemisphere countries are yet to plant, FAO’s preliminarily forecast for global wheat production in 2021 points to a third consecutive annual increase, to 780 million tons, a new record.”
World food prices rise to highest level since July 2014
https://arab.news/4w8yp
World food prices rise to highest level since July 2014
- UN food agency said the surge was led by jumps in sugar and vegetable oils
- Sugar prices climbed 6.4 percent month on month amid concerns over supplies in 2020/21
Global brands shut Middle East stores as conflict causes chaos
- Luxury brands and retailers close stores in Middle East
- Conflict threatens the region that has been luxury’s fastest growing
- Mass-market retailers monitor situation, adjust operations in region
PARIS: In Dubai and other major Middle Eastern shopping hubs, many stores are closed or operating with a skeleton staff as the escalating conflict in the region causes chaos for businesses and travel.
The US-Israeli air war against Iran expanded on Monday with no end in sight, with Tehran firing missiles and drones at Gulf states as it retaliates for a weekend of bombing that killed Iran’s supreme leader and reportedly killed scores of Iranian civilians, including a strike on a girls’ primary school.
Chalhoub Group, which runs 900 stores for brands from Versace and Jimmy Choo to Sephora across the region, said its stores in Bahrain were closed, while other markets, including the UAE, Saudi Arabia, and Jordan remained open though staff attendance was “voluntary.”
“We operate with a lean team formed of members who volunteered and feel comfortable to come to the store,” Chalhoub’s Vice President of Communications Lynn al Khatib told Reuters, adding that the company’s leadership team personally visited Dubai Mall and Mall of the Emirates on Monday morning to check in with workers.
E-commerce giant Amazon closed its fulfillment center operations in Abu Dhabi, suspended deliveries across the region and instructed its employees in Saudi Arabia and Jordan to remain indoors, Business Insider reported on Monday, citing an internal memo.
Gucci-owner Kering said its stores were temporarily closed in the UAE, Kuwait, Bahrain and Qatar and it has suspended travel to the Middle East.
Luxury growth engine under threat
Shares in luxury groups LVMH, Hermes, and Cartier-owner Richemont were down 4 percent to 5.7 percent on Monday afternoon as investors digested the knock-on impacts of the conflict.
The Middle East still accounts for a small share of global spending on luxury — between 5 percent and 10 percent, according to RBC analyst Piral Dadhania. But the region was “luxury’s brightest performer” last year, according to consultancy Bain, while sales of expensive handbags have stalled in the rest of the world.
Now, shuttered airports have put an abrupt stop to tourism flows into the region and missile strikes — including one that damaged Dubai’s five-star Fairmont Palm hotel — are likely to dissuade travelers, particularly if the conflict drags on.
“If you assume that it’s a $5 billion to $6 billion (travel retail) market and let’s say it’s going to be shut down for a month, we are talking about hundreds of millions of dollars that are definitely at risk,” said Victor Dijon, senior partner at consultancy Kearney.
If Middle Eastern shoppers cannot travel to Paris or Milan, that could also hurt luxury sales in Europe, he added.
Luxury brands have been investing in lavish new stores and exclusive events across the region. Cartier unveiled a “high-jewelry” exhibition in Dubai’s Keturah Park just days before the conflict started.
Cartier and Richemont did not reply to requests for comment.
Luxury conglomerate LVMH has also bet big on the region. Last month, its flagship brand Louis Vuitton staged an exhibition at the Jumeirah Marsa Al Arab hotel, and beauty retailer Sephora launched its first Saudi beauty brand.
LVMH does not report specific figures for the region, but in January Chief Financial Officer Cecile Cabanis said the Middle East has been “displaying significant growth.” LVMH did not reply to a request for comment on how its business may be impacted by the conflict.
The Middle East has also attracted new investment from mass-market players. Budget fashion retailer Primark said in January that it plans to open three stores in Dubai in March, April and May, followed by stores in Bahrain and Qatar by the end of the year.
“Primark is set to open its first store in Dubai at the end of March but clearly this is a fast-moving situation which we are monitoring closely,” a spokesperson for Primark-owner Associated British Foods said.
Apple stores in Dubai will remain closed until Thursday morning, the company’s website showed, while Swedish fast-fashion retailer H&M said its stores in Bahrain and Israel are closed.
Consumer goods group Reckitt has told all employees in the Middle East to work from home, temporarily closed its Bahrain manufacturing site and suspended all business travel to the region until further notice.
