UN Reports Global Food Prices at Nearly Three-Year Low

Ankara – The United Nations Food and Agriculture Organization (FAO) announced on Friday that global food prices have decreased to their lowest in almost three years, driven by substantial reductions in the prices of sugar, vegetable oils, and meat in December 2023.

According to Philippines New Agency, the food price index fell by 1.5 percent from the previous month to 118.5 points in December 2023, the lowest since February 2021. The index for the entire year of 2023 recorded an average of 124 points, which is 19.7 points or 13.7 percent lower than in 2022.

The FAO food price index is a measure used to track international market prices of five major food commodity groups. Notably, the sugar price index saw a significant drop of 16.6 percent month-on-month in December 2023. This decline was largely attributed to an increased production pace in Brazil, bolstered by favorable weather conditions.

Meanwhile, the vegetable oil price index decreased by 1.4 percent from November 2021, with prices of palm, soy, rapeseed, and sunflower seed oils falling due to subdued purchases by major importers.

The meat price index also experienced a decline, falling 1 percent in the same period. This was primarily due to weak import demand from Asia, particularly for pig meat.

Conversely, the cereal price index rose by 1.5 percent from the previous month. This increase was supported by weather-related logistical disruptions in some major exporting countries and tensions in the Black Sea region, coupled with strong demand.

The dairy price index also saw an increase of 1.6 percent in December 2023, driven by higher quotations for butter, whole milk powder, and cheese.

This latest report from the FAO provides a comprehensive overview of the global food market, highlighting significant trends in food commodity prices towards the end of 2023.