Trading platform 
Monitoring 
Express applications 
Fork Work 
Service 
News 
Directory 
The main reason for the increase in the cost of most food products worldwide is the growth in the production of biofuels and increased demand for agricultural resources, as reported by Bloomberg, cited by Vedomosti.
According to the article, the main food crops that biofuel producers have focused on are corn, soybeans, palm oil, and sugar. Their demand has significantly increased from food producers and energy companies in connection with the COVID-19 pandemic. Organizations in the USA are showing particularly active interest in these crops, as they are currently converting oil refineries to produce environmentally friendly diesel fuel. As a result, corn, beans, and palm oil prices on world markets have more than doubled, and sugar prices have increased by 50%.
It is forecasted that in the next few years, energy companies will significantly increase biofuel production. They intend to use more discarded animal fats, processed vegetable oils, distilled corn oil, and increase the demand for corn, soy, palm oil, and sugar. Therefore, according to the publication, the trend of rising food prices will continue at least until 2023.
In the European Union, measures are already being taken to restrict the use of food products as raw materials for biofuel production. According to the agency, nearly 60% of the raw materials for producing biodiesel consumed in the EU were imported, mainly palm oil. The rest includes rapeseed, processed vegetable oils, and animal fat.
Last year, the UN Food and Agriculture Organization announced the longest-running increase in food prices in the past seven years, which has lasted for 11 months. The Food Price Index (FFPI) in April of the current year reached 120.9 points, which is 2 points higher than in March and 28.4 points higher than in April 2020. According to FAO, the FFPI value has reached the highest level since 2014.
The increase in food prices has also affected Russia. In the autumn-winter period of last year, the price of sugar on the domestic market rose by 71%, sunflower oil by more than 23%, pasta by 10.5%, and bakery products by 6%. In December 2020, Russian President Vladimir Putin drew attention to this. The head of state called this trend an attempt to align domestic prices with global prices, emphasizing the need to combat this phenomenon. In the same month, Russian Prime Minister Mikhail Mishustin signed a series of resolutions to curb the rise in prices for socially significant products. These included agreements with food producers and suppliers to freeze prices, as well as restrictions on the export of agricultural raw materials.
