Russian Federation

FAO has released its Food Price Index for January 2012. Global food prices rose nearly 2 percent in January, marking the first increase since July 2011. Despite this increase, food prices remain 7 percent lower than the same time last year. For cereals, maize saw the steepest rise last month, reflecting concerns over crop prospects in South America. Wheat also rose due to unfavorable weather events and depleting exports from Russia.

Recent events in Russia, one of the largest suppliers of wheat in the world, have raised concern about the current and future price of wheat and wheat-based products. This article briefly examines the issue and determines if there is in fact cause for serious alarm.

Summary of Facts