Title: Why Are Food Prices So High?
Headings: Why Are Food Prices So High?
Why Are Food Prices So High?
Content: Why are food prices so high? Historically, food was a local issue as supply chains were short. Food supply and demand were largely functions of local crop conditions impacted by weather, growing conditions, pests, etc. Over the past century, supply chains and preservation have improved so that the food trade has become international. Commodities, crops, and finished goods are traded globally. This trade has stabilized prices when local weather or growing conditions are impacted. But rising populations, largely in Asia, have created demand for crops and finished good from other parts of the world, and have impacted prices. As every student of economics knows, price is a function of supply and demand. When demand for a commodity rises on constant supply, prices usually rise. Conversely, when demand falls at constant supply, prices usually fall.