FAO Reports Index of World Food Prices Rose in 2022

In a report released by the Food and Agriculture Organization of the United Nations (FAO) showed that the Food Price Index averaged 132.4 points in December which is 1% less than its value in 2021.

For the entirety of 2022, the index averaged over 143.7 points, which is 14.3% higher than the 2021 average value.

FAO Chief Economist Maximo Torero said that “Calmer food commodity prices are welcome after two very volatile years,”

He adds that “It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels, with many staples near record highs, and with prices of rice increasing, and still many risks associated with future supplies.”

The FAO Vegetable Oil Price Index decreased by 6.7% from November to its lowest level since February 2021. In December, global quotations for rapeseed, palm, soy, and sunflower seed oils decreased.

The FAO Cereal Price Index went down by 1.9% last November. The FAO Meat Price Index decreased by 1.2% in December. The strong competition from Brazil coupled with the ongoing harvests in the southern hemisphere increased the wheat supplies available for export and essentially pushed down the international prices of maize.

The FAO Dairy Price Index went up by 1.2% last December after five months of steady decrease. Increased international cheese prices and tightening market conditions pushed the monthly increase in the index.

The FAO Sugar Price Index increased by over 2.4% from November. The increase was due to the effects of the weather conditions on Indian crop harvest and sugarcane delays in Australia and Thailand.

Source: Business Mirror