Soaring 'Food Prices' Due to Russian Invasion... Price Index Slightly Drops 0.8% After 4 Months

Slight Decline in Grains and Oils... Meat, Dairy, and Sugar Prices Rise
Possible Future Increase in Grain Prices Due to Reduced Ukrainian Wheat Production

The global food price increase, which had continued due to Russia's invasion of Ukraine, has temporarily paused. In April, global food prices fell by 0.8% compared to the previous month. Photo by Yonhap News

[Asia Economy Intern Reporter Kim Se-eun] Global food prices, which had been continuously rising due to Russia's invasion of Ukraine and other factors, showed a slight decline last month.

However, they still remain at a high level, making it difficult to ease the burden on food prices at the table.

According to the Ministry of Agriculture, Food and Rural Affairs on the 7th, the Food and Agriculture Organization (FAO) of the United Nations announced that the global food price index for April was 158.5, down 0.8% from the previous month (159.7).

The global food price index had been rising continuously since last December, but after reaching its peak in March, it shifted to a downward trend for the first time in four months.

The global food price index is compiled and announced monthly by the FAO, which has monitored the international price trends of 24 items since 1996 and categorized them into five food price indices: cereals, oils, meat, dairy products, and sugar.

Looking at each category, the price indices for cereals and oils fell slightly, while those for meat, dairy products, and sugar rose.

The cereal price index fell 0.4% from the previous month, recording 169.5 points.

Corn prices dropped due to a large harvest in South America, but rice prices rose as demand increased in the Asian region.

However, wheat prices rose due to the continued blockade of Ukrainian export ports, but the increase was limited as countries like India increased their export volumes.

Nevertheless, it is uncertain whether wheat prices will maintain the current trend in the future.

Due to the aftermath of the war, Ukraine, known as the "breadbasket of Europe" for its abundant wheat and grain production, has become unable to harvest grains normally. On the same day, the British daily The Guardian analyzed satellite images and predicted that Ukraine's wheat production this year will decrease by more than one-third compared to last year.

Moreover, at the end of last month, the Ukrainian Ministry of Foreign Affairs announced that Russia is stealing grains from the territories it occupies, raising concerns that wheat prices may rise and the food crisis may worsen.

The oils price index was 237.5 points, down 5.7% from the previous month.

Palm oil prices fell due to decreased demand in China, but the decline was limited due to concerns over reduced exports from Indonesia.

Sunflower oil and soybean oil prices fell due to decreased demand, but rapeseed oil prices rose as supply shortages continued.

The meat price index rose 2.2% from the previous month to 121.9 points.

Pork prices continued to rise, and beef prices also increased due to a shortage of cattle for slaughter.

Poultry prices were driven up by export disruptions in Ukraine and an increase in avian influenza outbreaks in the Northern Hemisphere.

The dairy price index also rose 0.9% from the previous month, reaching 147.1 points.

This was due to reduced milk production in Western Europe and Oceania, as well as increased demand for butter as a substitute for sunflower oil.

Sugar prices increased due to rising demand for sugarcane used in ethanol production in Brazil, but the increase was limited as India's production, a major exporter, is expected to rise.

The sugar price index rose 3.3% from the previous month to 121.8 points.

The FAO forecasted that global grain production in 2021 and this year will reach 2,799.3 million tons, an increase of 0.8% compared to 2020-2021.

Food Price Index by Year. Photo by Ministry of Agriculture, Food and Rural Affairs, Yonhap News Agency

During the same period, global grain consumption is estimated to have increased by 0.9% to 2,784.9 million tons.

Global grain ending stocks are also expected to increase by 2.8% to 855.9 million tons.

Meanwhile, the Ministry of Agriculture, Food and Rural Affairs stated that the domestic grain-related industry currently holds stocks sufficient for use from July to September and is securing additional supplies.

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