World food prices drop: What has become cheaper over past year
Illustrative photo (Getty Images)
Over the past year, global prices for grains and sugar have seen a significant decline. Meanwhile, the costs of oil, dairy products, and meat have increased, according to the United Nations Food and Agriculture Organization (FAO).
The FAO Food Price Index in July 2024 stood at 120.8 points, slightly lower than the revised figure for June.
Currently, the index is 3.1% lower than its value a year ago and 24.7% below its peak of 160.3 points, which was reached in March 2022 following Russia's invasion of Ukraine.
The average value of the FAO Cereal Price Index in July was 110.8 points, 3.8% lower than in June and 12.0% lower than in July 2023. Global export prices for all major cereals have decreased for the second consecutive month. Strong competition among exporters and weak global demand also put pressure on wheat prices. Seasonal pressure further contributed to the decline in export prices for corn.
The FAO Vegetable Oil Price Index averaged 135.0 points in July, 2.4% higher than in June, marking the second consecutive increase to a one-and-a-half-year high. Over the past year, prices have risen by 4%. The continued growth of the index reflected higher global quotations for palm, soybean, sunflower, and rapeseed oils.
Regarding sunflower and rapeseed oil, the rise in global prices was mainly driven by deteriorating crop prospects in several major producing countries of these oilseeds in the 2024/25 season.
The FAO Dairy Price Index in July averaged 127.7 points, virtually unchanged from June, but 7.2% higher than the same time last year.
The FAO Meat Price Index in July averaged 119.5 points, 1.2% higher than in June, and 0.8% higher than the same time last year.
Global poultry meat prices rose due to strong import demand, particularly from the Middle East and North Africa. Conversely, pork prices slightly decreased, reflecting an oversupply situation in Western Europe due to weaker external and domestic demand.
The FAO Sugar Price Index in July averaged 120.2 points, 0.7% higher than in June, marking the second consecutive monthly increase, though still 17.9% lower than its value a year ago.
Ukraine's Ministry of Agrarian Policy and Food forecasts a loss of part of the harvest due to intense heat and drought in the summer of 2024. The harvest of early grains is expected to decrease by 5%, while late crops could see a loss of about 15%.
