Jamaican consumers are being told to brace for higher food prices as the soaring cost of grains on the international market is expected to impact the cost of feeds used in the production of diary, poultry, meats and eggs.

Corn and soybean prices skyrocketed to 30-month highs last week against the background of a confluence of shocks that have disruptied world supplies — which were already tight for both crops against growing demand.

According to reports from the United States Department of Agriculture (USDA), one of the contributing factors was the reduction in crop harvests last year in the United States – the world’s largest producer of corn, whose exports make up the majority of global trade in that grain.

The situation has been made worse by dry weather conditions in Argentina, as well as floods in both Australia and Brazil, all of which grow grains such as corn, wheat and soybeans for the world market.

In addition, the price of oil has reached almost US$100 per barrel, which has significantly impacted the cost of transportation and has contributed to driving up the grains complex for corn, wheat and soybeans over the past few weeks. Global reports are that the soaring prices of grains will continue to push up the cost of feed, diary, poultry, milk and meat worldwide.

“We — everybody that produces feeds or animal proteins — have to buy those grains and we are seing the cost going up,” said Conley Salmon, vice president of marketing, feed and agricultural supplies for Jamaica Broilers Group.

“It will cause a few more percentage points movements in the products which the average consumer will eat, such as eggs, poultry, fish etc… Anything that uses grain in its food is going to cost more,” he told Sunday Finance.

President of the Jamaica Egg Farmers Association Mark Campbell said egg prices could jump by a whopping 20 per cent over the next few weeks.

“It is affecting prices in Jamaica badly,” said Campbell, noting that “Based on what has happened over the last two months, you could very easy look for an adjustment of up to 20 per cent to catch up with the production costs increases.”

Campbell said the development might even force some farmers out of business.

“It is making it extremely difficult for farmers to get adjustments in their contracted prices out there because some members of the large consuming public don’t quite understand what’s happening,” he said.

What’s worse is that analysts expect the gains to continue until there is a clearer picture of how global crops for both corn and soybean will fare this year, according to the Associated Press.

“There is going to be a period of turbulence and there is no relief in sight… the cost of animal feed has been moving rapidly and nobody can give any kind of assurance as to when it will stop,” said a somber Campbell to Sunday Finance.