Food in world getting cheaper for 10 months in a row-FAO
2023.02.03 09:54
Food in world getting cheaper for 10 months in a row-FAO
By Kristina Sobol
Budrigannews.com – The United Nations food agency reported on Friday that global food prices fell in January for the tenth consecutive month and are currently down approximately 18% from a record high set in March of last year as a result of Russia’s invasion of Ukraine.
Last month, the Food and Agriculture Organization’s (FAO) price index, which measures the most widely traded food commodities, averaged 131.2 points, down from 132.2 points in December. The reading was at its lowest level since September 2021.
From an initial estimate of 132.4, the December number was revised down.
According to the FAO, cereals and meat prices remained largely stable while vegetable oils, sugar, and dairy fell in price.
The FAO increased its forecast for global cereal production in 2022 from 2.756 billion tonnes to 2.765 billion tonnes in separate estimates of cereal supply and demand on Friday.
In January, the FAO cereal price index increased by 4.8% year-over-year, but only by 0.1% month-over-month. Wheat production in Australia and Russia exceeded expectations, resulting in a 2.5% drop in international wheat prices. Rice, on the other hand, increased by 6.2% as a result of strong local demand in some Asian exporting nations.
In January, sugar, dairy, and vegetable oil prices all declined by 1.1%, 2.9%, and 1.4%, respectively. Meat only lost 0.1 percent.
According to FAO’s analysis of the supply and demand for cereals, Australia and Russia’s revised crop forecasts will result in a record global wheat harvest in 2022.
Due to China’s lower-than-anticipated output, the global rice production forecast has been revised down, with a 2.6% decrease from its 2021 all-time high.
The FAO stated that early indications suggested a likely rise in winter wheat cropping in the northern hemisphere in 2023. However, it cautioned that yields may be affected by high fertilizer costs.
Global cereal consumption was expected to decrease by 0.7% to 2.779 billion tonnes in 2022/23 from the previous year. World cereal stocks were estimated at 844 million tonnes, bringing the stock-to-use ratio for 2022/23 down from 30.8% in 2021/22 to 29.5%.
More:
U. S. employment data confirms no signs of recession
UAE experiencing difficulties in Oil industry
