Global food prices fall for the first time in 12 months

Global food commodity prices, as reported by the United Nations' FAO Food Price Index, experienced a decline for the first time in 12 months in June 2021, marking a return to a decrease after 12 months of consecutive increases. This drop, amounting to 2.5 percent, was influenced by lower prices in vegetable oils, cereals, and dairy products, despite increases in meat and sugar prices. The decline in cereal prices was primarily due to increased supplies and favorable production outlooks, while the decrease in dairy prices was attributed to reduced global demand and increased inventories. In contrast, sugar prices continued to rise, reaching a new multi-year high due to uncertainties in crop yields in Brazil. The FAO also forecasted a record high in global cereal production in 2021, despite a slight reduction in the forecast for wheat and coarse grains, due to increased maize stocks in China. Additionally, the report highlighted the need for external assistance in addressing food insecurity in 45 countries, many of which are struggling with conflicts and climate-related challenges, including 47 Low-Income Food Deficit Countries experiencing a forecasted decline in total cereal production due to drought and other adverse conditions.