Global food prices fell further in January, marking a trend that started in 2023 when prices dropped by 13.7%, with cereals and meat leading the fall, according to a report released by the UN Food and Agriculture Organisation (FAO).
The UN body’s food price index, which tracks international prices of a basket of staple foods, declined by 1% compared to December. Over a year-on-year basis, it fell by 10.4% compared to January 2023. The cereal price index dipped by 2.2% in January.
This fall was primarily led by wheat, as competition between exporting countries and the arrival of harvests in the southern hemisphere pushed down bread grain prices.
Corn prices also witnessed a decline, following the start of the harvest in Argentina and larger-than-expected stocks in the US.
However, rice prices climbed by 1.2%, reflecting strong demand for high-quality indica rice from Thailand and Pakistan and extra buying from Indonesia, the FAO analysis revealed.
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The vegetable oil price index rose marginally by 0.1%, whereas the dairy produce index remained stable.
Meat prices decreased for the seventh consecutive month, falling by 1.4%. The FAO noted that an oversupply from the leading exporting countries brought down international prices for poultry, beef and pork.
However the sugar price index jumped 0.8%, driven by concerns over the potential impact of below-average rainfall in Brazil on sugar cane crops expected to be harvested in April, along with poor production prospects in Thailand and India.
