In December 2023, global food prices experienced a 1.5% decline, marking a 10.1% decrease compared to the same period the previous year, as reported by the Food and Agriculture Organization (FAO) of the United Nations. The FAO, headquartered in Rome, highlighted that while dairy products and grains witnessed price increases during December, these were offset by lower prices for sugar, vegetable oils, and meat.
Grains and cereals, the index's largest component, observed a 1.5% price rise in December. Nevertheless, they concluded the year 16.6% below the levels recorded in December 2022, according to FAO data.
Dairy prices showed a 1.6% increase in December, attributed to heightened demand for butter, whole milk powder, and cheese. Despite this monthly gain, dairy prices were down by 16.1% for the entire year.
The sugar sub-index witnessed the most significant decline in December, plummeting by 16.6% from November to reach its lowest point in nine months. This decrease was attributed to robust production levels in Brazil. However, despite this sharp monthly decline, sugar prices concluded the year 14.9% higher than the levels seen in December 2022.
Vegetable oils experienced a 1.4% decrease in prices in December, contributing to a substantial 32.7% decline throughout 2023. This annual reduction was driven by lower prices for palm, rapeseed, soy, and sunflower seed oils, primarily influenced by weakening demand.
Meat prices faced a 1.0% decline in December and a 1.8% decrease for the entire year. The drop in prices at the end of the year was attributed to reduced demand for pig meat in Asia, which offset a slight increase in demand for pork. The FAO's report underscores the dynamic factors influencing global food prices and their implications on various food categories.
(With Agency Inputs)
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