Today, the Food and Agriculture Organization of the United Nations (FAO) stated that the global food price index fell for the ninth consecutive month in December 2022, down by 1.9 percent from the previous month.
The FAO Food Price Index averaged 132.4 points in December, 1.0 percent below its value a year earlier. However, for 2022 as a whole, the index, which tracks monthly changes in international prices of commonly traded food commodities, averaged 143.7 points, up 14.3 percent from the average value during 2021.
“We welcome the calmer food commodity prices after two years of extreme volatility,” said FAO Chief Economist Maximo Torero. “It is important to remain vigilant and maintain a strong focus on mitigating global food insecurity given that global food prices remain at high levels, with many commodities near record highs, with rice prices rising, and many remaining food shortages. risks associated with future supplies.
Global vegetable oil quotations led the decline, with the FAO Vegetable Oil Price Index down 6.7 percent from November to its lowest level since February 2021. International prices for palm, soybean, rapeseed and sunflower oils fell in December, driven by weak global import demand And expectations of a seasonal rise in soybean oil production in South America in addition to lower crude oil prices.
The FAO Cereal Price Index decreased by 1.9 percent compared to November. Ongoing seasons in the southern hemisphere have boosted exportable supplies of wheat, while strong competition from Brazil has pushed down global maize prices. Conversely, international rice prices rose, supported by Asian buying and currency appreciation against the United States dollar for exporting countries.
The FAO Meat Price Index in December fell 1.2 percent from November, with lower global prices for bovine and poultry meat outpacing higher prices for pigs and sheep. International beef prices were affected by weak global demand for medium-term supplies, while insufficient export supplies led to lower poultry meat prices. Pork prices rose on the back of strong domestic holiday demand, particularly in Europe.
The FAO Dairy Price Index rose 1.2 percent in December, after five months of consecutive declines. The rise in international cheese prices, reflecting the tightening market conditions, led to an increase in the monthly index, while the international prices of butter and milk powder declined.
The FAO Sugar Price Index also rose, up 2.4 percent from November, mostly on concerns about the impact of adverse weather conditions on crop yields in India and delays in sugarcane crushing in Thailand and Australia.
AS noted that the average FAO Food Price Index during 2022 was significantly higher than the previous year, which, in addition to the large increases in 2021, stimulated significant pressures and food security concerns for low-income food-importing countries, and its adoption, inspired From the Food and Agriculture Organization, a “food shock window” lending facility by the International Monetary Fund.
International prices of wheat and corn reached record levels throughout the year. The average value of the FAO Vegetable Oil Price Index for 2022 reached a new record high, while the FAO Dairy Price Index and Meat Price Index hit their highest levels for the whole year since 1990.