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The FAO\u2019s food price index declined 0.9 per cent<\/a> in December but increased 28 per cent<\/a> in 2021, averaging 125.7 points, its highest level since 2011.<\/p>\n Bloomberg argues that Chinese food stockpiles<\/a> are contributing to rising world food prices and questions why less than 20 per cent of the world\u2019s population holds 69 per cent of the world\u2019s corn reserves, 60 per cent of its rice reserves and 51 per cent of its wheat reserves.<\/p>\n Low food prices may be bad for consumers, but they are good for farmers. Indeed, Germany\u2019s Agriculture Minister argues that food prices should rise further<\/a>, arguing that \u201cjunk prices\u201d drive \u201cfarms into ruin, prevent more animal welfare, promote the extinction of species and pollute the climate.\u201d<\/p>\n Covid continues to disrupt supply chains, with supermarkets in the US<\/a> and Australia<\/a> running short of groceries. The FT asks (in a long read) if there is an end in sight<\/a> to these supply chain disruptions. The newspaper concludes that there probably isn\u2019t and that it might be time to start moving production closer to consumption.<\/p>\n Bloomberg argues that freak weather and climate change<\/a> will continue to disrupt our food supply long after Covid\u2019s effects wear off. Unfortunately, the FT agrees<\/a>. For example, unseasonably low rainfall across southern Africa<\/a> threatens harvests and could lead to higher regional food prices later in the year.<\/p>\n Even food-producing countries are not immune. After palm oil surged to a record in October 2021 and posted a third straight year of gains, Indonesia\u2019s government has said it will spend 3.6 trillion rupiahs ($250 million) to subsidise domestic cooking oil prices<\/a>.<\/p>\n California\u2019s Port of Oakland has said it will open a new container yard for agricultural exporters<\/a> struggling with capacity shortages and high freight costs. Following delays due to flooding in Vancouver Port, farmers are resorting to desperate measures to export their produce, chartering three 747 aeroplanes to fly potatoes to Japan<\/a>.<\/p>\n In environmental news, deforestation and other clearances of native vegetation in Brazil\u2019s Cerrado<\/a> rose 8 per cent to 8,531 sq km in the 12 months through July, the highest level since 2015. And in India, the BBC traces Delhi\u2019s smog<\/a> back to farmers\u2019 poor water management.<\/p>\n A switch from arabica to robusta coffee<\/a> could be one of the top consumer trends for the next few years as climate change makes arabica more challenging to grow. Changes in the way farmers grow, and process robusta could make it more palatable. Some predict that world robusta production could soon exceed that of arabica. (Meanwhile, for you coffee lovers out there, Seeking Alpha<\/a> has an interesting piece on the speciality coffee sector and how the major brands are profiting from rising demand in Asia. )<\/p>\n On the good news front, scientists are genetically engineering soil microbes<\/a> to reduce methane emissions from rice paddy fields.<\/p>\n Indonesia\u2019s President has revoked more than 2,000 mining, plantation and forest-use permits due to non-compliance or because they had been unused. He said he was acting to improve governance and transparency<\/a> in the natural resources sector.<\/p>\n The UK government will pay farmers in England to rewild their lands<\/a> and has invited bids for 10-15 pilot projects, each covering at least 500 hectares and up to 5,000 hectares, to a total of approximately 10,000 hectares in the first two-year phase. Funding for the project could reach \u00a3700 – \u00a3800 million a year by 2028.<\/p>\n The Guardian is worried that these measures, plus others, will lead to a decline in UK farm production<\/a> and increased food imports. A UK Parliamentary Committee has come to the same conclusion<\/a>, arguing that the UK government has not established any way to measure whether \u00a32.4 billion of annual post-Brexit farm payments will provide value for money.<\/p>\n Across the pond, the USDA will provide $1 billion in funding this year to support independent meat processors and ranchers<\/a> as part of a plan to address a lack of \u201cmeaningful competition\u201d in the meat sector.<\/p>\n In company news, Cargill<\/a> has paid \u20ac915 million to acquire the majority of Croda\u2019s<\/a> industrial chemicals business. The acquired business sells nature-derived alternatives to chemicals now commonly made with petroleum used in products ranging from plastic mouldings for cars to food and beverage packaging<\/a>.<\/p>\n The container shipping giant Maersk<\/a> has acquired Hong Kong-based LF Logistics<\/a> for $3.6 billion. The acquisition will add 223 warehouses<\/a> to Maersk\u2019s existing portfolio, bringing their total facilities to 549 globally. However, Maersk\u2019s stated intention to transform itself into a logistics provider is causing conflict within the company<\/a>.<\/p>\n The Chicago Board of Trade has sold what was formerly its largest trading floor<\/a> at 333 S. La Salle St. to an electricity company that will transform it into a sub-station. CME closed most of its trading floors in 2015.<\/p>\n