Basic food prices soar last decade 40 percent compromise future of poor countries - The month of May has set a new record in the escalation of food prices. The Food and Agriculture Organization of the United Nations (FAO) estimates that this is the biggest leap in the last 10 years. The pandemic has accelerated this inflation that threatens to cut short the short-and medium-term future of the poorest countries on the planet since their economies are more dependent on imports of these raw materials.

FAO estimates that prices for commodities such as cereals and dairy products have increased by 40 per cent since September 2011, and prospects for the remainder of the year suggest that they will continue in this trend.

Behind this worrying situation is China's increased demand for cereals, especially soybeans, to which is added the severe drought in Brazil, one of the world's granaries, as well as the demand for vegetable oil in the biodiesel industry. With this cocktail, the result can be no other than an increase in bullish pressure on prices.

In addition, some countries, large producers and exporters, have imposed export tariffs. This is the case in Russia, which taxes the sale of wheat to third parties. In this formation of the perfect storm for a global commodity crisis, countries like Argentina appear to promote controversial limitations and bans on exports of some of its most important resources.

Basic food prices soar last decade 40 percent compromise future

The FAO commodity price index is an important benchmark for the international market, and at the same time an evidence of the great inequalities between regions.

While developed countries are also being affected by the upward trend in food commodities, FAO is concerned about the impact that this cost escalation may have on countries and regions that are directly dependent on imports of these goods. All the more so when the world economy is still in the process of slow recovery following the economic debacle that the pandemic has brought.

Basic food prices soar last decade 40 percent compromise future

The health crisis disrupted the usual food supply chains, which has had a direct impact on the production and distribution of resources. The most affected regions are South America, with inflation at 21 per cent, followed by Africa and South Asia, with 12 per cent respectively. Oceania is also concerned after noting 8 per cent food price inflation.

Basic food prices soar last decade 40 percent compromise future: In the case of rich countries, this increase in the costs of raw materials represents only a small part of the total that the citizen pays, either in the shopping list or in the consumption of leisure and restoration. However, large companies such as Nestlé and Coca-Cola have already announced that it will be the consumer who will assume this increase in their production costs.

For their part, economists expect further growth in raw material costs in the coming months, as all other factors in the distribution chain (labor, transport, and shipping) are also making strong progress. The British Retail Consortium has warned this week that the second half of the year will maintain this dynamic.

Basic food prices soar last decade 40 percent compromise future

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BBVA and unions approach positions for the ERE agreement: negotiation focuses on voluntariness after the bank has lowered exits to 2,935

BBVA and unions approach positions for the possible ERE agreement. The deadline to reach the pact was this Friday, June 4, but they have extended the deadline to Tuesday, June 8, after the bank reduced departures by 863 fewer to 2,935 workers against the 3,798 extinctions proposed at the beginning of the negotiation.

This Friday, the bank has also presented a new economic offer and conditions that "approaches what could be an agreement", but that must be analyzed in detail before the next table. Union sources also explain that it remains to be seen what the bank offers in terms of voluntariness.

The bank's economic proposal for departures varies according to seniority, so for staff over 63 years it proposes a compensation of 20 days per year with a maximum of 12 months.

In the age group between 55 and 62, with 10 or more years of seniority, it proposes a temporary income of 72% of the Annual Salary Level, minus the theoretical unemployment benefit or subsidy, to be paid from the date of extinction until the age of 63. This temporary income would be 55% of the annual salary level for staff between 53 and 54 years of age. In these two cases, with a special Social Security agreement until the age of 63 with a revaluation of 3%.

While in the staff between 50 and 52 years, the compensation would be a single payment of 5 times 65% of the annual salary level with a maximum of 250,000 euros and the payment of a temporary income of 15,500 euros per year until the age of 61.

In addition, the bank's proposal includes voluntary premiums of 2,000 euros per triennium and fraction. 20,000 euros for antiques aged 15 or over. 15,000 euros for antiques between 10 and 15 years. To this is added an additional premium for difficult relocation of 15,000 euros for over 50 years.

Following this proposal, CCOO-BBVA assesses "positively the important progress that the company has made in this regard, which is approaching the agreed position; although there are still issues to be assessed and agreed". In the field of affectation and voluntariness, "CCOO has defended, defends and will defend that the secondment is totally voluntary for all the people who want to join, belong or not to the potentially affected groups", says the union.

"Likewise, CCOO demands that the generational equilibrium clause that conditions voluntary affiliation to this process be eliminated," he adds.

The bank cut the number of layoffs by 863 people (370 more than the previous proposal) on Thursday, a day before the deadline for negotiation of the employment regulation file (ERE) was established, which has finally been extended until Tuesday.

Specifically, BBVA proposes the departure of 2,935 workers, of whom 2,177 would come from the network of offices and 758 from the central services, the corporate center and the intermediate structures.

This reduction in departures is due to the relocation of 523 new posts, of which 34 new posts will be specialized sales forces, and the creation of a Task Force team (support team) with 100 personnel.

In addition, the bank's proposal includes a reduction in the number of offices to be closed by 50, which causes a reduction in the number of people affected in the group of office directors and urban center managers by 50.

The reduction of outflows also occurs with less than 50 commercial managers and the number of affected by 106 is also reduced by discounting the number of vegetative casualties.