Global Food Prices Dipped in December – FAO Report
A report by the United Nations’ Food and Agriculture Organisation (FAO) has revealed that the world food prices fell slightly in December as international prices for vegetable oils and sugar fell significantly from lofty levels.
The FAO Food Price Index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 133.7 points in December, a 0.9 per cent decline from November but still up 23.1 per cent from December 2020.
Speaking on the report, which was released on FAO’s website, the organisation’s Senior Economist Abdolreza Abbassian, said while high prices are expected to give way to increased production, the high cost of inputs, ongoing global pandemic and uncertain climatic conditions are leaving little room for optimism about a return to more stable market conditions in 2022.
Reviewing the entire year 2021, the FAO Food Price Index averaged 125.7 points, a 28.1 per cent increase above the previous year. Also, the FAO Cereal Price Index decreased 0.6 per cent from November, as wheat export quotations fell amid improved supplies following southern hemisphere harvests, offsetting firmer maize prices underpinned by strong demand and concerns over persistent dryness in Brazil. For the full year, however, the FAO Cereal Price Index reached its highest annual level since 2012 and averaged 27.2 per cent higher than in 2020, with maize up 44.1 per cent, wheat up 31.3 per cent, but rice down by 4.0 per cent. The FAO Vegetable Oil Price Index declined 3.3 per cent in December, with weaker quotations for palm oil and sunflower oil reflecting subdued global import demand that may be linked to concerns over the impact of rising COVID-19 cases.
For 2021 as a whole, the FAO Vegetable Oil Price Index reached an all-time high, increasing 65.8 per cent from 2020. The FAO Sugar Price Index decreased by 3.1 per cent from November, reaching a five-month low, reflecting concerns over the possible impact of the Omicron COVID-19 variant on global demand as well as a weaker Brazilian Real and lower ethanol prices. For 2021 as a whole, the FAO Sugar Price Index rose 29.8 per cent from the previous year to its highest level since 2016. The FAO Meat Price Index was broadly stable in December but over 2021 as a whole, the FAO Meat Price Index was 12.7 per cent higher than in 2020. The FAO Dairy Price Index was the only sub-index to increase in December, rising 1.8 per cent from the previous month, as international quotations for butter and milk powders increased amid lower milk production in Western Europe and Oceania. Cheese prices declined marginally, reflecting a preference for Western European dairy products. In 2021, the FAO Dairy Price Index averaged 16.9 per cent higher than in 2020.
source Agro Nigeria:
