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Global food prices fell by more than 10% over year

Global food prices fell by more than 10% over year Global food prices fell by more than 10% over year (Getty Images)
Author: Maria Kholina

World food prices in November 2023 remained unchanged, showing a decrease of 10.7% over the course of the year, according to the UN Food and Agriculture Organization (FAO).

The FAO Food Price Index, which tracks monthly changes in international prices for a range of food items traded on the global market, stood at 120.4 points in November.

Світові ціни на продовольство впали на понад 10%: що подешевшало за останній рік

The FAO Cereal Price Index decreased by 3.0% compared to October. International prices for feed grains dropped by 5.6%, primarily due to a sharp decline in corn prices, while wheat prices in November fell by 2.4%.

Meanwhile, the Vegetable Oil Price Index increased by 3.4% compared to October. International prices for palm oil rose by more than 6.0% in November. Global prices for sunflower oil moderately increased, while quotations for soybean and rapeseed oil decreased slightly in November.

The FAO Dairy Price Index increased by 2.2% compared to October, driven by increased domestic demand ahead of the winter holidays in Western Europe.

The FAO Sugar Price Index increased by 1.4% on a monthly basis, averaging 41.1% higher in November than the same month last year. This surge was influenced by growing concerns about global export opportunities amid deteriorating production prospects in two leading exporting countries, Thailand and India, due to severe drought conditions associated with the El Niño phenomenon.

The FAO Meat Price Index decreased by 0.4% compared to October, reflecting a slight decline in global prices for poultry, pork, and beef, mainly due to abundant export supplies.

Record grain production

FAO raised its forecast for this season's harvest. Global grain production in 2023 is now forecasted at 2,823 million tons, 0.9% higher than the previous year and 10.3 million tons above the previous record level reached in 2021.

The Ministry of Agrarian Policy of Ukraine once again increased its forecast for this year's harvest due to record grain yields. The total harvest volume of cereals and oilseeds for the current year is 81.3 million tons.

According to the ministry, the yield of cereals increased to 54.7 c/ha, a record figure for Ukraine.

This year's high harvest was one of the main factors contributing to low inflation in the second half of 2023, which fell to 5.1%, the lowest level since 2020.