March 25
Show news feed

World food prices fell for the tenth consecutive month, down 0.8% in January this year compared to December 2022. This is reported in a review of the FAO (Food and Agriculture Organization of the United Nations).

The FAO food price index was 131.2 points in January, down 1.1 points (0.8%) from December. Compared to its peak in March 2022, the index dropped by 28.6 points (17.9 percent).

The Cereal Price Index in January was 0.1% higher than in December and 4.8% higher than in January last year. The dynamics of the movement of the world prices turned out to be multidirectional: prices for rice and corn were up, while prices for barley and wheat - down.

International wheat prices show a downward trend for the third month in a row: in January they fell by 2.5% due to increased supply on world markets, as production volumes in Australia and Russia were higher than previously predicted, experts say FAO.The vegetable oil price index in January compared to December decreased by 2.9%, year-on-year - almost 25%. This was the result of a reduction in world prices for palm, soybean, sunflower and rapeseed oils.

The price index for dairy products in January dropped 1.4% from December to its lowest level in 12 months. This was due to a decline in world prices for butter and milk powder. World prices for butter decreased for the seventh month in a row against the background of the unwillingness of market participants to enter into long-term import contracts at current prices, as they expect a further fall in prices and growth of supplies from Oceania. International prices for whole milk powder have fallen due to reduced demand from leading importers and increased supplies from New Zealand. Skim milk powder prices also declined, mainly due to sluggish global demand. Meanwhile, global cheese prices rose slightly, driven by a rebound in catering and retail sales activity in Western Europe after the New Year holidays, as well as currency fluctuations.

The meat price index in January was 0.1% below December's level. This was the seventh consecutive month of decline, but the index is still 1.3% higher than a year ago. Lower world prices for poultry, beef and pork contributed to the price decline in January. Poultry prices declined the most because, even with widespread avian flu, export supply from leading suppliers still exceeds import demand. Pork prices declined slightly amid a high supply of slaughtered pigs, especially in Brazil and the United States, and lower-than-expected imports by China in the run-up to the Chinese New Year. International beef prices also declined due to an increased supply of slaughtered animals, mainly in Oceania. Meanwhile, lamb prices rose on higher import demand despite an increase in Australian slaughter volumes.

The January sugar price index was 1.1% lower than December. This was the first decline after a sharp rise in the previous two months. It was mainly due to a good harvest in Thailand and favorable weather conditions for sugarcane crops in key sugarcane-growing areas in Brazil. At the same time, concerns over declining yields in India and a possible reduction in export supply kept sugar prices from falling further.

The FAO Food Price Index is a weighted average that tracks international price movements for five major food commodity groups.

This text available in   Հայերեն and Русский