Food prices skyrocketed around the world

According to the FAO statement, the organization’s Food Price Index averaged 132.4 points in the range, 1 percent below its value a year ago. However, the index, which tracks monthly changes in international prices of widely traded food products for 2022, rose 14.3 percent compared to 2021, reaching an average of 143.7 points. While the World Food Commodity Price Index declined for 9 months, it declined 1.9 percent in December 2022 compared to the previous month.

Global vegetable oil prices led the decline, while the FAO Vegetable Oil Price Index fell 6.7% from November to its lowest level since February 2021.

International supplies of palm, soybean, rapeseed and sunflower oils declined in December, driven by weak global import demand and expectations of a seasonal increase in soybean oil production in South America, as well as by falling prices. crude oil prices.

The FAO Cereal Price Index has fallen 1.9 percent since November. Continued harvests in the southern hemisphere have increased the exportable supply of wheat, while strong competition from Brazil has reduced world corn prices.

DAIRY AND SUGAR PRICE INDEX INCREASES

In December, the FAO Meat Price Index fell 1.2 percent from November. International beef prices have been affected by global demand for medium-term supplies, while adequate export supplies have pushed down poultry prices. Pork prices rose on the back of strong domestic demand, especially in Europe.

The FAO Dairy Price Index rose 1.2 percent in December after five consecutive months of declines. High international cheese prices, reflecting tighter market conditions, fueled the index’s monthly rise, while international butter and milk powder quotations declined.

Since November, the FAO Sugar Price Index has also increased by 2.4 percent, mainly due to concerns about the impact of adverse weather conditions on crop yields in India and delays in milling of sugar. sugarcane in Thailand and Australia.

“FOOD PRICES HAVE REACHED HIGH LEVELS”

In 2022, the FAO Food Price Index average increased significantly compared to the previous year. World wheat and corn prices reached record levels throughout the year. The average value of the FAO Vegetable Oil Price Index for all of 2022 hit a new record, while the FAO Dairy and Meat Price Index were at their highest levels since 1990.

In the statement, which also included the views of FAO’s Chief Economist, Máximo Torero, it was noted:

“After 2 very volatile years, calmer food commodity prices are welcome. “As world food prices are skyrocketing, prices of many foods are increasing, and there are still many risks to future supplies, it is important to remain vigilant and focus strongly on mitigating global food insecurity.”