edited by: Mohammad Haris
Last Update: January 06, 2023, 16:57 IST
Global prices of wheat and maize reached record highs during 2022.
The average price of the FAO Vegetable Oil Price Index for all of 2022 has reached a new record high
World food prices declined for the ninth month in a row in December 2022, down 1.9 percent from the previous month. However, for 2022 as a whole, food prices are projected to rise by 14.3 per cent compared to the year-ago period, the Food and Agriculture Organization (FAO) said on Friday.
“The FAO Food Price Index averaged 132.4 points in December, down 1 percent from the year-ago value. However, for 2022 as a whole, the index, which tracks the monthly change in international prices of commonly traded food items, averaged 143.7 points, up 14.3 percent from the 2021 average. The United Nations Food Agency said in a statement.
World prices of vegetable oil led the decrease, with the FAO Vegetable Oil Price Index down 6.7 percent from November to its lowest level since February 2021.
FAO Chief Economist Maximo Torero said, “Calm food commodity prices are welcome after two very volatile years. It is important to remain vigilant and have a strong focus on reducing global food insecurity, as world food prices continue to remain high.” Many staples are near record highs, and rice prices are on the rise, and there are still many risks associated with future supply.”
International quotations for palm, soy, rapeseed and sunflowerseed oils declined in December, driven by lower global import demand and prospects for seasonally rising soy oil production in South America, as well as declining crude prices .
Cereal prices, as measured on the FAO Cereal Price Index, have decreased by 1.9 percent since November. The ongoing Southern Hemisphere harvest boosted exportable supplies of wheat, while strong competition from Brazil pulled down world corn prices. Conversely, international rice prices rose, buoyed by Asian buying and currency appreciation against the United States dollar for exporting countries.
Meat prices, based on the FAO Meat Price Index, fell 1.2 percent in December from November, with lower world prices of bovine and poultry meat offset by higher pig and ovine meat prices. Lower global demand for medium term supplies weighed international beef meat prices, while more than adequate export supplies pushed down poultry meat prices. Pork prices rose due to strong internal holiday demand, especially in Europe.
Dairy prices on the FAO Dairy Price Index rose 1.2 percent in December after five consecutive months of decline. Higher international cheese prices, reflecting tighter market conditions, added to the monthly increase in the index, while international quotations for butter and milk powder declined.
The FAO Sugar Price Index also rose from November, up 2.4 percent, mostly due to concerns over the impact of adverse weather conditions on crop yields. India and delays in sugarcane crushing in Thailand and Australia.
The FAO Food Price Index average in 2022 was significantly higher than the previous year, catalysing significant stress and food security concerns for low-income food-importing countries on top of a larger increase in 2021, and the FAO induced “food shock window” lending facility by the International Monetary Fund.
Global prices of wheat and maize reached record highs for the year. The average price of the FAO Vegetable Oil Price Index for all of 2022 rose to a new record high, while the FAO Dairy Price Index and Meat Price Index marked their highest full-year levels since 1990.
read all latest business news Here