The meat consumption is nicely divided around the world. The US, Russia and Europe like chicken, Brazil, Mexico and South Korea prefer pork and the Middle East eats lamb. Even though the globalisation of meat trade is being attacked sometimes by trade wars (the US- Russia, the US-Brazil etc.), the growing middle class in emerging economies demands a richer protein diet. Global meat prices have hit a 20-year high and we can say the food inflation becomes one of the drivers of the global inflation trends.

Apart from robust demand, the lack of supply stays behind the high prices, as the US and Australia curtailed herds. And, as we already know, the volatile prices attract speculators. These bet on even higher prices in future, pushing the inflation upwards, while millions starve. The politicians promised to do something with these hedge funds, but since they do nothing, there must be paid by them. No other reasonable explanation of their depressive inactivity comes to my mind. It is not just a meat price speculation; it starts much earlier when a sharp rise in the price of wheat and other cereals pushes the production costs higher.

Those who don't observe the trends can believe the Russia export ban (introduced due to fires and draughts) is to blame. Industry professionals, like the European Flour Milling Association, will tell you immediately who drives the wheat prices, and thus also the meat prices, artificially up. If only the politicians represented the people, the food inflation would not have to hit our civilisation so drastically this year.

Milan Sebo

PHOTO: ISIFA