'Bapsang Moolga' Rising... World Food Price Index Hits Highest in 10 Years and 5 Months

November 134.4 Points, Highest Since June 2011
Grains Up 3.1% · Dairy Products Up 3.4% etc.

[Sejong=Asia Economy Reporter Moon Chaeseok] The FAO Food Price Index, one of the price signals for table food costs, has soared to its highest level in 10 years since 2011. It continued its upward trend for four consecutive months. This is due to the significant price increase caused by grain and dairy supply failing to meet demand.

According to the Ministry of Agriculture, Food and Rural Affairs on the 3rd, the FAO Food Price Index announced last month rose by 1.2% to reach 134.4 points. The index maintained its upward trend for four consecutive months, reaching its highest level in over 10 years since June 2011 (135.0 points). Since 1996, the FAO has monitored international price trends for 24 items and publishes monthly food price indices for five categories (grains, oils, meat, dairy, sugar).

The grain index rose 3.1% from the previous month to 141.5 points. Wheat prices increased due to supply not keeping pace with high demand, and barley prices also rose due to supply shortages and the ripple effect of rising wheat prices. Corn prices increased thanks to strong sales from Argentina, Brazil, and Ukraine, but the rise was limited by increased supply from the United States. Rice prices showed little change as harvests progressed in various parts of Asia and import demand was dispersed.

The dairy index also rose 3.4% from the previous month to 125.5 points. Butter and powdered milk prices increased due to reduced export availability and stocks caused by disrupted supply from major milk-producing countries in Western Europe, and production in Oceania was lower than expected. Cheese prices rose slightly due to increased demand but were constrained by supply limitations caused by export shipment delays. The sugar index rose 1.4% from the previous month to 120.7 points. The increase was driven by rising demand for ethanol-use sugarcane in Brazil, the largest sugar exporter. However, the rise was limited by expected large exports from India and Thailand.

The oils index and meat index fell slightly. The oils index decreased 0.1% from the previous month to 184.6 points. Palm oil prices remained stable amid concerns over a resurgence of COVID-19 and forecasts of slowed production in major producing countries, while soybean and rapeseed oil prices fell slightly. The meat index dropped 0.9% to 109.8 points. Pork prices declined due to reduced imports from the EU into China, and lamb prices fell as exportable supply from Australia increased. Beef prices remained stable as price declines in Brazilian beef offset price increases in Australian beef, and poultry prices showed no change despite outbreaks of highly pathogenic avian influenza in Europe and Asia, as global supply met demand.

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