World Food Price Index Rises for 12 Consecutive Months... Highest Since September 2011

FAO May Index at 127.1p... Up 4.8% from April
Grains, Oils, and Sugar Surge Over 6%... Meat and Dairy Also Rise

[Sejong=Asia Economy Reporter Moon Chaeseok] Last month, the global food price index rose by 4.8% compared to April. This marks a continuous increase for one year, with the index soaring to its highest level in 10 years. This comes amid a significant rise in dining table prices since the beginning of this year.

According to the Ministry of Agriculture, Food and Rural Affairs and the United Nations Food and Agriculture Organization (FAO) on the 4th, last month's global food price index recorded 127.1 points, up 4.8% from the previous month. Since rising from 91.0 points in May last year to 93.1 points in June, the index has continued to increase for 12 consecutive months.

By category, grains were recorded at 133.1 points, up 6.0% from the previous month. The price increase was mainly influenced by insufficient international supply of corn, downward revisions in Brazil's production outlook, and continued high demand.

Oils and fats rose 7.8% from the previous month to 174.7 points. In the case of palm oil, production growth in Southeast Asian countries slowed, and global import demand increased, keeping inventory levels low in major exporting countries, which led to price increases. Soybean oil prices showed strength due to globally high demand in sectors such as biodiesel.

Sugar rose 6.8% from the previous month to 106.7 points. Factors contributing to the increase included delayed harvests in Brazil, the largest exporter, due to dry weather, rising international crude oil prices, and the strengthening of the Brazilian real.

Meat rose 2.2% from the previous month to 105.0 points. Increased imports by East Asian countries including China, slowed slaughtering of beef and lamb, and increased demand in major production areas for poultry and pork, which reduced supply, all influenced the price rise.

Dairy products recorded 120.8 points, up 1.5% from the previous month. Skimmed milk powder and whole milk powder saw high import demand, and cheese prices rose due to insufficient supply from the European Union (EU) compared to demand.

Global grain production for 2021?2022 is expected to reach 2.8209 billion tons, a 1.9% increase compared to 2020?2021. During the same period, global grain consumption is predicted to increase by 1.7% to 2.8257 billion tons. The expected global grain stock for 2021?2022 is 811.5 million tons, a 0.3% increase.

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