Global food prices fall for the first time in 12 months

Published Jul 9, 2021

Tridge summary

The UN's Food and Agriculture Organization (FAO) has reported a 2.5% monthly drop in the Food Price Index in June, marking the first decrease since June 2020. This decrease, which was attributed to lower prices in vegetable oils, grains, and dairy products, contrasts with the 33.9% annual increase. The FAO also reported changes in specific price indices, such as a 9.8% decrease in the Vegetable Oil Price Index and a 1% decrease in the Dairy Price Index, but a 0.9% increase in the Sugar Price Index. The Meat Price Index also rose by 2.1%. The FAO's Grain Supply and Demand report has lowered global grain production forecasts due to dry weather, particularly in Brazil, but also anticipates increased global rice production and reduced world grain use, leading to expected increases in world grain stocks. The FAO has emphasized the need for external support to address food insecurity in 45 countries, many of which are struggling with conflicts and climate-related shocks.

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Original content

The FAO Food Price Index fell 2.5 percent in June after a year of consecutive increases. The United Nations (UN) Food and Agriculture Organization (FAO) announced the Global Food Price Index for June. Accordingly, the FAO Food Price Index decreased by 2.5 percent on a monthly basis in June, while it increased by 33.9 percent on an annual basis. The index, which decreased by 2.5 compared to May, was announced as 124.6 in June 2021. The June drop was the first drop in the Index after twelve consecutive months of increase. The decline in June reflected lower prices for vegetable oils, grains and dairy products. The FAO Food Price Index tracks changes in international prices of the most traded food products worldwide. The June decline reflected lower prices for vegetable oils, grains and, to a more modest extent, dairy products, which more than offset generally higher meat and sugar prices. The FAO Vegetable Oil Price Index fell 9.8 percent in June to its lowest level in four months. ...

Source: Magazinebbm