SMK St.

BONAVENTURA 1 MADIUN

Team Name :

1. Mokhamad Ryan
2. Emi Peter
3. Biabida Rich Brilian

High Food Prices a here to stay

We try to analyze this case. The Covid-19 pandemic has influenced economic
sector all over the world. It causes the price spikes for all producers especially in food
and beverage. These products are consumed for daily need. We realize that the
increasing price is needed to make them stay still in their production. The price hikes is
reasonable to do because there are a lot of factors in pushing it. It’s like reported by UN
Food and Agriculture Organization about the cost of ingredients that has pushed global
food price to a 10 year-high. It may relate with the supply side that makes inflation
worse than the previous years. “Based on IFRI Blog by Sara G and friends states that
on the supply side, production has been hampered by poor weather in some major
producing regions for instance Southeast Asia that has seen slower than expected
growth in vegetable oil production.” It means that the farmers take important role in
supplying product. The pandemic is bringing a range of new challenges for growing the
food people depend upon. We hope that farming technology can help the farmers to
improve the effectiveness in cultivate mechanization. Moreover, soaring energy prices
that is used to distribute product to fullfill the demand can also cause the price hikes.
When food is in short supply, it will be necessary to prioritize who gets food first. The
producers will count all things that are included in their productions. The chain in
distributing food all over the world is more complicated depend on the policy of each
countries. Although the currently situation allow to reopen for some activities but the
limitation is still applied. And also some factories has the shortage of labor because
along the pandemic, to survive the factories reduce the employees. The adding of
unpredictable cost in this situation makes the condition bad. The complex situation of
the circle market makes the surge in food price. It’s reasonable if the producers will
increase the price of their products. We finally agree that the price of food is high after
analyzing it.