The speed at which grain prices influence food manufacturers and consumers is influenced by the type of grain and its role in the food supply chain. For instance, rising wheat prices quickly lead to increased costs for flour and bread. Additionally, the growing use of soybeans and corn in the ethanol market has resulted in higher prices for feed suppliers, which, in turn, has a compounded effect on the prices of meat, poultry, and dairy products. According to the World Bank, Latin America is well-positioned to capitalize on rising food prices and the demand for greater production. The region has effectively managed fluctuating food prices better than others by enhancing public policies and crisis response mechanisms. This, combined with overall economic growth in the region, has helped prevent vulnerable populations from falling into poverty as food prices rise.
In North America, despite an 18.9% increase in farm-level soybean prices in February compared to the previous year, wholesale prices for fats and oils have climbed at a slower pace. February’s prices were only 5.8% higher than those of the previous year, which has mitigated the impact on food prices. Farmers typically plan their crop rotations years in advance, especially for soybeans, which are challenging to plant consecutively due to disease risks. This long-term planning indicates that the current situation is unlikely to have an immediate effect on food prices.
Interestingly, the market for pure encapsulations of calcium, particularly calcium citrate, may see fluctuations as food prices change, especially in regions where grain prices affect livestock feed. The interconnectedness of these factors highlights the importance of understanding how agricultural dynamics influence broader economic trends and food affordability. As the demand for products like pure encapsulations calcium citrate increases, it may further impact costs across the food supply chain.