June Global Food Price Index Down 2.3%... Declining for Three Consecutive Months

[Asia Economy Sejong=Reporter Son Seonhee] Global food prices have shown a decline for three consecutive months.

According to the Ministry of Agriculture, Food and Rural Affairs on the 9th, the June global food price index announced by the United Nations Food and Agriculture Organization (FAO) recorded 154.2 points, down 2.3% from the previous month (157.9). The global food price index has maintained a downward trend for three consecutive months since reaching its peak in March (159.7), with price indices for grains, oils, and sugar declining by product group.

The grain price index in June was 166.3, down 4.1% from May (173.5). Wheat prices fell due to the start of harvest in the Northern Hemisphere, improved production forecasts in Canada and Russia, and a global slowdown in import demand. Corn prices dropped due to ongoing harvests in Argentina and Brazil and improved crop conditions in the United States. On the other hand, rice prices rose, mainly for Indica and Basmati rice.

For oils, the index recorded 211.8, down 7.6% from the previous month (229.2). Palm oil prices fell due to increased supply from major producing countries and expectations that Indonesia will export domestic palm oil stocks. Sunflower oil and soybean oil prices declined as import demand was suppressed by recent price increases, and rapeseed oil prices also fell due to demand suppression and the approaching harvest season.

Meat prices rose 1.7% from the previous month (122.7) to 124.7. Prices for all types of meat increased, with poultry prices rising sharply due to ongoing supply disruptions caused by the Ukraine war and avian influenza outbreaks in the Northern Hemisphere. Beef prices increased as China lifted import restrictions on Brazil, and pork prices rose slightly due to expanded imports by major importing countries.

Dairy prices also rose 4.1% from the previous month, while sugar prices fell 2.6%.

FAO forecasts that global grain production for 2022?2023 will decrease by 0.6% year-on-year to 2,791.5 million tons. During the same period, global grain consumption is expected to decline by 0.1% to 27,974 million tons.

In this regard, the Ministry of Agriculture, Food and Rural Affairs stated, "We plan to closely communicate with the industry to monitor market conditions and actively consider additional measures such as financial and tax support in cooperation with related ministries."

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