Global food price increase may come due to the U.S. Drought

The drought that has not seen since at least half a century, destroyed the one-sixth of the U.S. corn crop and threatens with a jump in global food-prices – writes the weekend edition of Financial Times.

The U.S. government estimates that U.S. maize producers had to stop cultivation of corn on an area that is larger than the combined area of Belgium and Luxembourg after the exceptionally hot weather of July caused irreparable damages in the yield.

The failure of the US corn crop will hit the world’s food manufacturers, including Nestlé, Kraft, and Tyson, who have already warned that they will pass on higher prices to consumers.

(Kertész Róbert, MTI)