2024-05-14 06:06:57
In April, the benchmark index of international prices of food products rose for the first time during the year, along with the rise of global prices of sugar, meat and rice, according to the report of the United Nations Food and Agriculture Organization (FAO).
The FAO food price index, which measures monthly changes in international prices of the most traded food products, averaged 127.2 points in April 2023, up 0.6 percent from March.
Moreover, the index is 19.7 percent lower than the April 2022 figures, but at the same time 5.2 percent higher than the April 2021 figures.
The FAO sugar price index rose 17.6 percent from March to its highest level since October 2011, due to dry weather in India, China, Thailand and the European Union, which reduced production expectations and results, as well as sugarcane harvesting in Brazil. off to a slow start and accompanied by high international crude oil prices, which could increase demand for sugarcane-based ethanol.
During the month, the FAO meat price index increased by 1.3 percent, the main reason of which was the high prices of pork meat, which was followed by the prices of poultry meat due to the stagnation of demand and production of imports from Asia due to animal health problems. International beef prices have increased as a result of a decrease in the supply of cattle for slaughter, especially in the United States of America.
At the same time, the price indices of other food products, except for rice, continue to show a downward trend.
The FAO price index of cereal crops has decreased by 1.7 percent compared to March and is on average 19.8 percent lower than the value of April 2022. International prices of grain have registered a 2.3 percent decline, which is largely related to the great opportunities for exports from Australia and the Russian Federation. A 3.2 percent drop in world corn prices was also recorded, which is explained by the increase in seasonal supplies as a result of the current harvests in South America. On the other hand, in the conditions of high costs of agricultural investment and unfavorable weather conditions, especially outside Asia, the international prices of rice have increased for Asian buyers.
“It is very important to continue to follow the development of prices and the reasons for price increases. After significant slowdowns, along with the recovery of the economy, the demand will also increase, pushing up the prices of food products,” said FAO Chief Economist Massimo Torero. “At the same time, the increase in rice prices is very worrying, and in this regard, the restoration of the Black Sea initiative is extremely important in order to avoid the increase in the prices of wheat and corn,” he added.
The FAO vegetable oil price index fell by 1.3 percent during the month, registering a decline for the fifth month in a row. Global palm oil prices remained stable, while soybean, canola and sunflower oil prices fell due to the impact of the seasonal harvest, due to an expected record soybean harvest in Brazil.
A 1.7 percent decrease in the price index of FAO dairy products was recorded, the reason for which is the continuous decrease in the global demand for the import of milk powder and the greater opportunities for the export of cheese in Western Europe.