Food prices decrease by 2.1% in 2024

Global food prices fell by 2.1% in 2024 compared to the previous year, mainly due to the decline in global grain and sugar prices, reported this Friday the Food and Agriculture Organization of the United Nations (FAO).

The price index calculated by the organization, which follows the evolution of international prices for a basket of basic products, fell 13.3% for cereals compared to 2023 and 13.2% for sugar in the same period.

These declines were partly offset by increases in the prices of vegetable oils (+9.4%), dairy products (4.7%) and meat (2.7%).

The downward trend became even more evident last month. The benchmark global food price index fell in December compared to the previous month, driven by falling international sugar prices.

The FAO index registered an average of 127.0 points in December, 0.5% less than in November and 6.7% more than in December 2023.

The cheapest cereals, the most expensive rice

Cereal prices in December remained almost unchanged from November and 9.3% below their level a year earlier, as an increase in corn prices offset a decline in wheat prices.

However, for 2024 as a whole, the grain price index averaged 113.5 points, 13.3% below the 2023 level, marking a second annual decline from the record level of 2022. .

The index for rice prices increased by 0.8% from its 2023 average level.

The index for vegetable oil prices decreased by 0.5% in December compared to November, although remains 33.5% higher than the level of a year ago.

In 2024, its price index was 9.4% higher than in 2023, in a context of tight global supplies.

More expensive meat and dairy

The index for meat prices, unlike other sub-indices, increased by 0.4% in December compared to November, ending a three-month downward trend, and was 7.1% above its value December 2023.

In 2024, the meat price index was 2.7% above its 2023 average value, with higher quotes for beef, sheep and poultry offsetting lower prices pork international markets.

The index for dairy product prices decreased after seven consecutive months of increases, falling 0.7% compared to November, although still 17.0% above its December 2023 value.

For 2024 as a whole, the dairy price index was on average 4.7% higher than in 2023, mainly due to rising butter prices.

The sugar price index led the monthly decline, falling 5.1% since November due to improved prospects for the sugar cane harvest in major producing countries, such as Brazil, falling 10.6% below its December 2023 level.

In 2024, the sugar price index was on average 13.2% lower than in 2023.