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Dominican Republic: Rising commodity prices impact the economy

Rises in the prices of raw materials in international markets and increased shipping rates are the other effects that the COVID-19 pandemic has had on the world economy.

Although some prices of essential goods have fallen in the Dominican Republic in recent days, the pressures remain. Foods like kidney beans, sweet potatoes, cucumbers, lettuce, cauliflower, coriander, lemon, and chinola have risen in the last week. Meanwhile, the yautía, banana, garlic, beets, tomatoes, carrots, broccoli, and spinach lowered their prices. According to the weekly reports registered by the Ministry of Agriculture of the New Market, foods such as chickens, eggs, and rice maintained their prices.

However, the Dominican Poultry Association (ADA) reported this Monday that the international prices of wheat, corn, flour, and soybean oil, necessary inputs in the food production chain, have registered constant price increases during the last year, accumulating an increase of more than 50%.

“The conditions of the world market, caused by various factors that include the special purchases of cereals, made by China to the various producing countries, the reduction of safety inventories and elements of uncertainty in the yields of large agricultural areas, have generated a global alert for its impact on the basic food basket, including poultry proteins,” the ADA quoted in a statement.

Additionally, poultry producers indicated that maritime freight rates had experienced increases similar to those of the sector’s prices. And the situation of marine transport could be maintained at least for the entire first semester.

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