The United Nations agency has announced its latest Food Price Index (FFPI) tracks the monthly international prices of cereals, vegetable oils, dairy, meat and sugar.
The FFPI averaged 132.4 points last month, one percent lower than the previous December.
However, it averaged 143.7 points last year – 14% higher than the average in 2021.
Preventing food insecurity
“Softer food commodity prices welcomed after two very volatile years,” speak FAO Chief economist Maximo Torero.
“It is important to maintain vigilance and a strong focus on mitigating global food insecurity as world food prices remain high, with many staples near record high, rice prices increased and there are still many risks related to future supply. he added.
The FFPI is “significantly higher” in 2022 than in 2021, which, together with the large increase that year, has caused “significant stress and food security concerns” for food importing countries. poorer, the FAO said.
This makes the International Monetary Fund (IMF) to apply the “Food Shock Window”, inspired by this agency.
World prices of wheat and maize hit a record high last year and vegetable oil averages hit a new record, while the individual milk and meat price indices also marked their highest levels for the whole year since 1990.
Decline in December
The lower FFPI in December was due to a drop in the Fruit and Vegetable Price Index, which fell 6.7% month-on-month, reaching its lowest level since February 2021.
“International quotes for palm, soybean, rapeseed and sunflower oils all fell last month, driven by weak global import demand and a seasonally increased soybean oil production outlook,” the FAO said. in South America as well as falling crude oil prices.”
The Grain Price Index fell nearly 2% in November. Ongoing harvests in the Southern Hemisphere boosted wheat supplies for export, while strong competition from Brazil sent corn prices down.
However, rice prices rose, largely supported by “Asian buying and appreciation of the currency against the US dollar for exporting countries”.
Christmas rises in Europe
Last month also saw the meat price index drop 1.2%. For example, beef prices were affected by “dull demand for supply in the medium term”, the FAO said, while poultry prices were pushed down by “more export than necessary”.
Meanwhile, pork prices rose, largely supported by solid pre-Christmas demand, particularly in Europe.
The dairy price index rose 1.2% in December, after five consecutive months of decline. The FAO attributed this to higher international cheese prices, reflecting tight market conditions, despite lower international butter and milk powder quotes.
The Sugar Price Index also increased 2.4% from November, mainly due to concerns about the impact of adverse weather conditions on crop yields in India as well as delays in the sugarcane pressing in India. Thailand and Australia.
