United Nations: Global rise in food prices – meat, vegetable oils and grains lead the “race”

The global food price index rose in April for the second month in a row, driven by higher prices for meat, vegetable oils and grains, according to a report from the Food and Agriculture Organization of the United Nations (FAO). Conversely, the prices of dairy products and sugar fell.

Food Price Index, which tracks… Monthly changes in global prices Among all food items traded globally, they averaged 119.1 units in April, up 0.3% from March's revised level, while down 9.6% from a year earlier.

The meat price index rose by 1.6% in April compared to the previous month, with global prices for poultry, cattle and sheep rising. Global pork prices fell slightly, reflecting weak domestic demand in Western Europe and continued weak demand from major importers, particularly China.

The prices of grains and vegetable oils rose, and the prices of sugar and milk fell

Grain prices also rose. The price index rose by 0.3% compared to March, ending a three-month losing streak. Global wheat export prices stabilized in April, as strong competition among major exporters offset concerns about unfavorable growing conditions in parts of the European Union, the Russian Federation and the United States of America. Corn export prices rose, driven by higher demand.

The vegetable oil price index also rose by 0.3% since March, reaching a 13-month high. Higher sunflower and canola oil prices offset lower palm and soybean oil prices.

The price of sugar fell by 4.4%, closing below the April 2023 level. This decline is mainly related to improving global supply prospects.

Milk prices fell by 0.3%, ending six consecutive months of gains, due to weak demand for skimmed milk powder and a decline in global cheese prices, affected by the rise in the US dollar. In contrast, global butter prices rose amid steady demand.

Cocoa nightmare

It should be noted that the continued rise in cocoa prices has also contributed to food price inflation and made chocolate and its types consumed in most countries of the world much more expensive.

These are developments that change the landscape in the industry and the market, as conditions have changed and they will not return to the previous system, say international players in the industry. In the future, chocolate will seem like a simple luxury, top chocolate industry executives told Bloomberg.