FAO: World Food Prices Drop For Fifth Consecutive Month

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World food prices have fallen for a fifth consecutive month but are still nearly eight per cent higher than a year ago, the UN Food and Agriculture Organization (FAO) reported on Friday.

Its latest Food Price Index shows that the prices of five commodities – cereals, vegetable oil, dairy, meat and sugar – were lower in August than in July.

The Index tracks the monthly international prices of these breadbasket staples. It averaged 138.0 points last month, down nearly two per cent from July, though 7.9 per cent above the value a year before.

Ukraine exports a factor

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FAO said the decline in cereal prices reflected improved production prospects in North America and Russia, and the resumption of exports from Black Sea ports in Ukraine.

A landmark agreement to unblock Ukraine grain exports amid the ongoing war was signed in July by the country, Russia, Türkiye and the UN.

Rice prices on average held steady during August, while quotations for coarse grains, such as maize, increased marginally.

Vegetable oil prices decreased by 3.3 per cent, which is slightly below the August 2021 level. FAO attributed this to increased availability of palm oil from Indonesia, due to lower export taxes, and the resumption of sunflower oil shipments from Ukraine.

High price for cheese

Although dairy prices saw a two per cent drop, they remained 23.5 per cent higher than in August 2021.

The price of cheese increased for the tenth consecutive month, though milk prices “eased” following expectations of increased supplies from New Zealand, even amid projections of lower production in Western Europe and the US.

The price of meat declined by 1.5 per cent but remained just over eight per cent higher than the value last August.

International quotations for poultry fell amid elevated export availabilities, and bovine meat prices declined due to weak domestic demand in some top exporting countries, while pig meat quotations rose.

Sugar prices also hit their lowest level since July 2021, largely due to high export caps in India and lower ethanol prices in Brazil.

Outlook for cereals and wheat

FAO has also issued its global cereal production forecast for this year, which projects a decline of nearly 40 million tonnes, or 1.4 per cent from the previous year.

The bulk of this decline mainly concerns coarse grains, with maize yields in Europe expected to drop 16 per cent below their five-year average level due to the exceptional hot and dry weather conditions affecting the continent.

By contrast, FAO expects there will be a “negligible drop” in worldwide wheat production resulting from expected record harvests in Russia and conducive weather conditions in North America.

Global rice production is also expected to decline by 2.1 percent from the all-time high reached in 2021.

SOURCE: UN News

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Editorial Staff
Editorial Staff
Our Editorial Staff at St. Lucia Times is a team publishing news and other articles to over 200,000 regular monthly readers in Saint Lucia and in over 150 other countries worldwide.

7 COMMENTS

  1. Will someone explain to me how, with all the costs of food production rising steeply over the past 2 years (fertilizer, irrigation, transportation, fuel, etc.,), is it possible for the cost to consumers to fall? Could it be that there is now an attempt by food producers to hide the price gouging that has always existed, in the face of the world-wide unrest in the ” global south” populations, which has spread now to so-called industrialized countries of Europe?

    I know that the attempt to tie this reduction in the food bill (a lie) to increased exports from Ukraine is nothing but a marketing ploy to legitimize the expansion of GMO-crops in Europe (Monsanto was a major backer for the 2014 coup in Ukraine), when big agricultural companies bought up most of the arable land in Ukraine -the historical bread basket of Europe,

  2. I see that the UN News is trying to supplant the BBC News as the world leader in the dissemination of lies and propaganda! I guess its planned release was supposed to coincide with the glorious counter-offensive victory by the US-sponsored Ukraine Nazis against the Russian-led liberation of Kherson.

  3. Let’s see if Massy’s starts passing on this savings to the consumers. Be vigilant and make noise otherwise our passivity will continued to be rewarded with artificial inflation.

  4. This must be an error because the prices at Massy stores are currently at an all time high inspite of the stated global decrease in prices….I thought that this so called decrease would have impacted the Caribbean countries as well…

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