Soaring Table Food Prices... Global Food Price Index Rises for 8 Consecutive Months

Dairy Products, Meat Also Up... Impact of Supply Shortages and More

[Asia Economy Reporter Moon Chaeseok] The United Nations Food and Agriculture Organization (FAO) Food Price Index has risen for eight consecutive months.

FAO announced on the 7th that last month's global food price index recorded 113.3 points, up 4.3% from the previous month. It has been on an upward trend for eight consecutive months since recording 91.0 in May last year.

Since 1990, FAO has monitored international price trends for 24 items and compiles indices for five categories?grains, oils, meat, dairy products, and sugar?publishing them monthly.

Looking at the price indices by item, grains rose 7.2% from the previous month to 124.2 points.

Corn prices increased by 11.2% compared to the previous month. This was due to reduced production in the U.S., large purchases by China, a temporary export halt in Argentina, and dry weather conditions.

Wheat prices rose 6.8% due to strong corn prices, high international demand, and expectations of reduced Russian exports after March.

Rice prices increased due to supply shortages in Thailand and Vietnam.

Oils rose 5.9% from the previous month to 138.8 points.

Palm oil prices soared to an eight-and-a-half-year high as heavy rains caused production in Indonesia and Malaysia to fall short of expectations.

Soybean oil prices have risen for eight consecutive months due to prolonged strikes in Argentina and reduced export volumes.

Dairy products recorded 111.0 points, up 1.5% from the previous month. Prices of butter and whole milk powder increased as New Zealand's export supply decreased and purchases in China rose ahead of the Lunar New Year.

Meat prices rose 0.9% from the previous month to 96.0 points.

Poultry prices increased due to export restrictions in countries affected by avian influenza (AI), and lamb prices rose due to supply shortages in Oceania and strong demand from China.

Beef and pork prices saw slight increases as Chinese purchases increased ahead of the Lunar New Year, but supply was sufficient.

Sugar prices rose 8.1% from the previous month to 94.2 points.

Prices jumped amid concerns over reduced global supply due to poor crop prospects in the European Union (EU), Russia, and Thailand, as well as dry weather in South America.

FAO forecasts that global grain production for 2020-21 will reach 2.7443 billion tons, a 1.3% (36.4 million tons) increase compared to 2019-20.

Grain consumption is expected to rise 1.9% (51.7 million tons) to 2.7614 billion tons. Ending stocks are projected to decrease by 2.2% (17.8 million tons) to 821 million tons.

Price index by item. (Source: Ministry of Agriculture, Food and Rural Affairs)

This content was produced with the assistance of AI translation services.