Science economics is developing every year. The world's leading economists are trying to do everything to create the most favorable living conditions for people. However, there are some factors that no one can deal with, and these factors affect the prices of products that are vital for everyone. We are talking about food products.
Be that as it may, the main reason for the rise in prices in summer and early autumn is bad weather. Every year, due to bad weather conditions, crops around the world suffer. For example, torrential rains in Brazil and drought in the United States this summer have already hit the pockets of consumers around the world. Summer price increases were also supported by the late start of the monsoon season in India and severe drought in Australia.
Sugar prices have already increased by 12% in July, due to the unfavorable agricultural situation in Brazil, which is the main supplier of sugar cane. Due to the drought in the United States, prices for corn and cornmeal rose by as much as 33%.
One can recall the difficult food situation in Russia in 2010, when, for example, the prices for buckwheat, due to the summer drought and low harvest, reached simply unprecedented heights. Then, instead of the plan of 95 million tons of grain in Russia, only 60 were harvested. That year it was decided to impose an embargo on grain exports, which still could not stop the rapid rise in prices. As for this year, already in July, unfavorable forecasts were made regarding the final result of the harvest. This year, the grain harvest in Russia was planned at the level of 90-95 million tons, however, due to bad weather conditions, these expectations have already dreamed down to 77 million tons. In addition, under the WTO conditions, Russian exporters are likely to have a desire to send as much grain as possible for export, which will provoke a strong rise in prices within the country.
However, the following question remains: in July, the harvest is not yet completed and its final volume is unknown. Why, then, are prices starting to rise in July? The point is in the forecasts of specialists. The same situation occurs when forecasters warn in advance of the danger of a natural disaster, and groceries and essential goods become more expensive in stores. For food suppliers, this is a kind of precautionary measure.
