Global Food Prices High

The Food & Agriculture Organization (FAO) has revealed that in 2013 world food prices stayed high but steady.

Large global supplies following record harvests in 2013 continued to exert downward pressure on international prices of wheat and maize in particular. By contrast, rice prices were up slightly in December.

The index averaged 206.7 points in December, nearly unchanged from the previous month, with a sharp increase in dairy prices and high meat values balancing out a steep decline in sugar quotations and lower cereal and oil prices.

It said large supplies pushed down international prices of cereals (with the exception of rice), oils and sugar. However, dairy values peaked in 2013 and meat also hit a record.

“Last month, the FAO Food Price Index remained elevated as strong demand for certain high-protein foods continued to drive up prices overall, countering falling prices of major food crops after last year’s abundant harvests,” said FAO Economist Abdolreza Abbassian.

FAO’s Food Price Index is a trade-weighted index that measures prices of five major food commodities on international markets: cereals, dairy products, meat, sugar, and vegetable oils.

FAO’s Sugar Price Index averaged 234.9 points in December, a sharp slide of 15.8 points from November, the third consecutive monthly decline, with the sugarcane harvest in Brazil – the world’s largest sugar producer and exporter – exceeding expectations.
It said overall in 2013, sugar prices were 18 per cent lower than in 2012.

The Meat Price Index averaged 188.1 points in December, just slightly above its November level. It said prices for bovine and pork moved higher: demand from China and Japan resulted in beef prices showing consistent growth since last June.

Prices for poultry were stable while those for sheep meat moved lower.