The world food price index fell for the ninth consecutive month last December and decreased by 1.9% compared to the previous month, the Food and Agriculture Organization of the United Nations reported this Friday (FAO).
The FAO Food Price Index it recorded an average of 132.4 points, 1% lower than the score achieved a year earlier. However, for the year as a whole, the index reached an average of 143.7 points, 14.3% above its average value throughout 2021.
The chief economist of the FAO, Máximo Torero, indicated that “a greater calm in the prices of food products is good news after two very volatile years.”
Torero stressed the importance of “remaining vigilant and continuing to consider mitigating global food insecurity a high priority, given that global food prices remain at high levels, many staple foods are near all-time highs, rice prices are rising and there are still many risks associated with future supplies.”
Vegetable oil leads price decline
World vegetable oil quotations led the decline, declining 6.7% from November to reach their lowest level since February 2021. International quotations for palm, soybean, rapeseed and sunflower oils fell in December , driven by weak global import demand and prospects for a seasonal increase in soybean oil production in South America, as well as lower crude oil prices.
Decreases the cost of cereals and meat
The cereal price index fell by 1.9% from November. The current harvests in the southern hemisphere increased exportable volumes of wheat, while strong competition from Brazil reduced world maize prices. In contrast, international rice prices rose, driven by Asian purchases and the appreciation of the currencies of exporting countries against the US dollar.
The meat cost index fell by 1.2% in December compared to November, with a decline in world prices for beef and poultry, which offset the rise in prices for pig and sheep meat .
International bovine meat prices were impacted by weak global demand for medium-term supplies, while more than adequate export supplies pushed down poultry meat prices. Pork prices rose due to strong domestic demand during the holidays, especially in Europe,
The price of dairy products and sugar rises
The cost of dairy products increased by 1.2% in December after five months of consecutive declines. The increase in international prices for cheese drove the monthly rise in the index, while international prices for butter and powdered milk fell.
Sugar exports rose 2.4% from November, mainly due to concerns about the impact of adverse weather conditions on crop yields in India and delays in crushing sugarcane in Thailand and Australia.
