Rome, Italy | BAZZUP | According to a study released on Friday by the Food and Agricultural Organization of the United Nations (FAO), global food prices fell for the 12th consecutive month in March. The index fell for the first time in a full year at that time.
The wide Food Price Index of the FAO fell 2.1 percent in March, and it is now down 20.5 percent from its all-time high, which it reached a year ago after a significant uptick following the Russia-Ukraine conflict.
The largest component of the index, grains and cereals, fell by 5.6 percent from the previous month and by 18.6 percent from the previous year.
The @FAO Food Price declined for the 12th consecutive month in March, driven by lower global quotations for cereals and vegetable oils.
It marks a 2.1% decline from the previous month and 20.5% from its peak level of March 2022.https://t.co/4j124gvz4y
— FAO Newsroom (@FAOnews) April 7, 2023
Wheat prices dropped the highest among grains and cereals, dropping 7.1% as exports from Ukraine across the Black Sea allayed market concerns. Rice prices fell by 3.2 percent as a result of information about harvest prospects in India, Vietnam, and Thailand, while corn prices fell by 4.6 percent as a result of robust South American production.
Vegetable oil costs dropped by 3% in March and by a startling 47.7% when compared to March 2022. While meat costs increased slightly in March but were still down by 5.3 percent over the previous 12 months, dairy prices decreased by 0.8 percent, leading to a fall of 10.7 percent compared to a year earlier.
FAO claims that the softening of global demand and changes to supply
The primary exception to this pattern was the price of sugar, which increased by 1.5% in March and to its highest level since October 2016.
FAO representatives have regularly cautioned in recent months that market uncertainties and problems with fuel supply pose a threat to many of the world’s poorest countries, despite prices lowering.
The FAO’s Food Price Index is based on prices for 73 different goods across 23 distinct food commodity categories at a global level in comparison to a base year.
On May 5, the latest FAO index is expected to be published.