Some recent price spikes, according to the US Agriculture Secretary, are the consequence of firms “taking advantage” of the coronavirus epidemic and supply-chain disruptions to drive up avocado prices.
Food prices have risen dramatically over the world in the last year as economies recuperate from the epidemic and energy and fertilizer costs rise. Transporters are also having trouble keeping up with the increased demand for products, causing major delays at ports.
Food inflation has accelerated to 7.5 percent in the United States, placing President Joe Biden under pressure ahead of November’s mid-term elections.
As the US economy normalizes and supply issues are handled, food costs should begin to decline, according to Vilsack.
On Monday, the government will resume importing Mexican avocados, following a week-long halt prompted by a threat against a US Department of Agriculture food inspector. According to USDA statistics published by Bloomberg, wholesale prices in Chicago increased by 59 percent during the embargo.
He dismissed Republican calls for “damages” from China to make up for shortages in purchases of US commodities. House Minority Leader Kevin McCarthy and a group of colleagues alleged last week that Beijing failed to satisfy a pledge to buy $16 billion in agricultural commodities as part of the first phase of a U.S.-China trade pact in 2020 and 2021.
Vilsack flew to Dubai to boost agricultural commerce between the United States and the United Arab Emirates and its Persian Gulf neighbors. According to him, the US would try to increase sales of nuts, cattle, fruits, and vegetables.
He described the UAE as “a gateway to the Gulf countries.”
“It’s a chance for us to increase our activities in Saudi Arabia, Kuwait, Qatar, and everywhere else.” We have such a diverse selection of items. “Basically, we can address any need that people identify.”
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