World’s food prices up in April – first time in a year

Global food prices rose in April, the first time in a year, according to the United Nations food agency’s world price index.

According to the Food and Agriculture Organization’s (FAO) price index, which tracks the most commonly traded food commodities, April’s figures averaged 127.2 points as against 126.5 for March, indicating a 0.6% rise.

However, the figure fell 20% less than a record high in March 2022 following Russia’s invasion of Ukraine.

“As economies recover from significant slowdowns, demand will increase, exerting upward pressure on food prices,” said FAO Chief Economist Maximo Torero.

– Key points to note

April’s rise is a reflection of higher prices for sugar, meat and rice, which has countered price declines in the cereals, dairy and vegetable oil price indices.

While the meat index rose 1.3% month-on-month, dairy prices fell 1.7%, vegetable oil prices fell 1.3% and the cereal price index shed 1.7%. A price decline in world prices of all major grains also outweigh an increase in rice prices, the report says.

Also, according to the report released Friday, the sugar price index rose 17.6% from March to its highest level since October 2011.

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FAO said the rise was linked to concerns of tighter supplies schedules following downward adjustments to production forecasts for India and China, along with lower-than-earlier-expected outputs in Thailand and the European Union.

“The increase in rice prices is extremely worrisome and it is essential that the Black Sea initiative is renewed to avoid any other spikes in wheat and maize,” Torero said.

“The FAO Cereal Price Index dipped 1.7 percent from March and averaged 19.8 percent below its April 2022 value. International wheat prices declined by 2.3 percent, due mostly to large exportable availabilities in Australia and the Russian Federation,” the report said.

“World maize prices fell 3.2 percent as supplies in South America seasonally increased with ongoing harvests.

“On the other hand, against a backdrop of reduced harvests caused by higher input costs and adverse weather, especially outside of Asia, sales to Asian buyers sustained an increase in international rice prices.

“The FAO Vegetable Oil Price Index declined by 1.3 percent in the month, registering its fifth consecutive monthly decline. World palm oil prices were stable, while quotations for soy, rapeseed and sunflower oils declined in step with seasonal harvest pressure from a potentially record soybean crop in Brazil.”

In a separate report on cereals supply and demand, the FAO forecast world wheat production in 2023 of 785 million tonnes, slightly below 2022 levels but still the second largest outturn on record.