Food Prices Fall Globally for the 12th Straight Month, 2.1% in March, Sugar Rises

by John Ojewale
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Fruit and vegetable stall - Global Food Prices

The United Nations Food and Agriculture Organization reported on Friday that global food prices fell for the 12th straight month in March. This is said to be the first time the index has fallen in a full year.

FAO’s broad food price index fell to 2.1% in March after hitting a high a year ago in the wake of the conflict between Russia and Ukraine. However, it is now at 20.5%.

Grains and cereals, the largest component in the index, was down to 5.6% compared to the previous month. It is now down by 18.6% from the last 12 months. Among the grains and cereals, wheat prices fell the most. It dipped to 7.1% as exports from Ukraine via the Black Sea assuaged market fears. Corn prices were 4.6% lower due to strong production in South America. However, rice prices were 3.2% lower, due to data from harvest prospects in India, Vietnam, and Thailand.

Prices of vegetable oils were down by 3% in March and a staggering 47.7% compared to March 2022 figures.

Dairy prices, meanwhile, were down by 0.8%, contributing to a decline of 10.7% compared to a year earlier. Meat prices inched 0.8% higher in March but were still down by 5.3% over the last 12 months.

FAO said that the softening demand and adaptations to global supply chain obstacles, such as increased competition between suppliers, were the main factors pushing prices lower over the last year.

The main exception to that trend was sugar prices, which rose by 1.5 per cent in March, reaching their highest level since October 2016.

In spite of the falling prices, FAO officials have repeatedly warned in recent months that fuel supply issues and other market uncertainties threaten many of the world’s poorest nations.

FAO’s Food Price Index is based on worldwide prices for 23 food commodity categories. It covers prices for 73 different products compared to a baseline year.

 

cc: Punch Ng

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