Global Food Prices Hit All-Time High in November 2021- FAO

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The United Nations’ Food and Agriculture Organisation (FAO) has disclosed that the World food prices rose for the fourth consecutive month in November.

The FAO disclosed this in a report it released on Thursday, made available to Agronigeria.

The report detailed the changes in global food prices, particularly those of cereal, sugar, wheat, dairy, vegetable oil and meat.

According to the report, the food price index for November averaged over 134 points, making it the highest since June 2011, however, the rice prices were stable.

FAO noted that the case of rising food prices was also met with an increased demand for commodities like high-quality wheat, in the global market.

“The FAO Food Price Index averaged 134.4 points in the month, its highest level since June 2011 and 1.2 per cent higher than during October. The index, which tracks monthly changes in the international prices of commonly-traded food commodities, was 27.3 per cent higher than its year-ago level.

“The FAO Dairy Price Index led November’s aggregate rise, increasing by 3.4 per cent from the previous month. Strong global import demand persisted for butter and milk powders as buyers sought to secure spot supplies in anticipating tightening markets.

“The FAO Cereal Price Index increased by 3.1 per cent in November from the previous month and was 23.2 per cent higher than its year-ago level. Maize export prices rose slightly and international rice prices remained broadly steady, while wheat prices hit their highest level since May 2011.

“The increase reflected strong demand amid tight supplies, especially of higher quality wheat, while prices were also supported by concerns about untimely rains in Australia and uncertainty regarding potential changes to export measures in the Russian Federation.

“The FAO Sugar Price Index was 1.4 per cent higher in November than in October and nearly 40 per cent above its level in November 2020. The increase was primarily driven by higher ethanol prices, though large shipments from India and a positive outlook for sugar exports by Thailand tempered the upward pressure on quotations”, the report stated.

While global food prices rose geometrically, the prices of some commodities declined, in comparison to the previous month’s figures.

The vegetable oil price index declined by 0.3 per cent, compared to its October index, the report further revealed.

Similarly, the price index for meat witnessed a 0.9 per cent decline- the fourth consecutive monthly decline.

Meanwhile, the organisation attributed this decline to the reduced purchase of pig meat in China, and the decline in ovine prices.

The report read, “The FAO Vegetable Oil Price Index declined by 0.3 per cent from a record high reached in October, reflecting lower values for soy and rapeseed oils as well as lower crude oil prices. International palm oil prices remained firm.

“The FAO Meat Price Index decreased by 0.9 per cent, its fourth consecutive monthly decline. Influenced by reduced purchases of pig meat by China led to lower international quotations, while ovine prices also fell steeply on increased exportable supplies from Australia. Bovine and poultry meat prices were largely stable.”




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