Food insecurity is often related to poverty. When people do not have access to food for themselves or their families due to a lack of money or proper resources, it might seem at first a problem of the poor nations.
That is why it is surprising to learn that the US Department of Agriculture reported that 38.3 million Americans, 11.8% of the population, experienced food insecurity in 2020. According to experts in the field, these numbers underestimate the real extent of the problem.
One of the main reasons is affordability since most households cannot afford the foods required for a balanced diet, with prices being as they are today.
Eating a nutritious diet can be costly
Eating a well-balanced diet is costly; for example, fresh fish can cost up to $15 per pound, much higher than fresh beef, poultry, or pork. The same applies to fruits and vegetables. Buying suitable types of fresh fruit for daily consumption is also not cheap, and one must consider spoilage on the other hand.
According to the USDA, households in the low-, middle-, and high-income groups spent roughly 36%, 20%, and 8% of their disposable income on food in 2019 respectively. Therefore, depending on the family size, it is not unusual for low-income groups to spend half of their disposable income on food – or even most of it.
Rising commodity prices is a contributor
In January 2021, the demand for maize, wheat, and rice climbed 43%, 12%, and 10%, respectively. The strong demand resulted in a surge in food commodity prices. However, there is a flipside to this phenomenon, and today Individuals can take advantage of the rising prices of commodities, through commodity trading with brands like CAPEX.com.
CAPEX.com offers CFDs of forex, indices, cryptocurrencies, shares, ETFs, blends, and commodities. The broker offers commodity assets such as cocoa, beans, sugar, wheat, and coffee.
CAPEX.com provides educational resources as part of their Learn to Trade academy if you are a novice trader. The academy provides access to video-based tutorials on forex indicators, candlestick guides, chart patterns, and trading CFDs.
CAPEX.com has developed a web-based trading platform, and grants access to the MetaTrader 5 for the relevant markets. The CAPEX WebTrader is accessible through any device, has intuitive functionality, and you can monitor up to ten price charts simultaneously.
The broker provides various tools such as Trading Central, TipRanks, and Hot Stocks, integrated with the trading platforms. CAPEX.com’s support staff is reachable via phone, email, and a chat service; they also provided contact details to their various global locations.
The uncertain weather conditions and infectious diseases contribute to the supply constraints of food globally. Furthermore, it results in higher prices since when demand increases, it puts a further strain on the supply chain.
Unfortunately, poorer countries suffer the consequences since they don’t have the monetary support to access proper food resources. However, as the data shows, developed nations like the US are exposed to the same problem.
On the other hand, as we’ve seen, there is also a potential in these rising prices. CAPEX.com is an award-winning broker that offers multiple assets to trade via their intuitive platforms. This brand seems to be a popular broker for individuals who wish to take up trading, making CAPEX.com a broker to consider joining.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.