Global Food Prices Jump 13% In March, Says FAO
The Food and Agriculture Organisation (FAO) of the United Nations has revealed that global food prices soared by 13 per cent in March.
According to its monthly Food Price Index released on Friday, FAO said the surge is the highest level ever since its inception in 1990.
The FAO noted that food prices averaged 159.3 points in March, up 12.6 per cent from February.
The FAO Index which tracks monthly changes in the international prices of a basket of commonly-traded food commodities stated that the latest level of the index was 33.6 percent higher than in March 2021.
According to the report, the rise is a reflection of new all-time highs for vegetable oils, cereals, and meat sub-indices, while those of sugar and dairy products also rose significantly, adding that they were driven by a large increase in wheat and all coarse grain prices largely as a result of the war in Ukraine.
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“The Russian Federation and Ukraine, combined, accounted for around 30 per cent and 20 per cent of global wheat and maize exports, respectively, over the past three years,” the report stated.
“World wheat prices soared by 19.7 per cent during the month, exacerbated by concerns over crop conditions in the United States of America.
Meanwhile, maize prices posted a 19.1 per cent month-on-month increase, hitting a record high along with those of barley and sorghum.
“Contrasting trends across the various origins and qualities kept the March value of FAO’s Rice Price Index little changed from February, and thus still 10 per cent below its level of a year earlier.
The food organization also noted that the expected loss of exports from the Black Sea region exacerbated the already tight global availability of wheat.
According to the report, vegetable oil prices rose by 23.2 per cent, driven by higher quotations for sunflower seed oil, of which Ukraine is the world’s leading exporter.
Palm, soy, and rapeseed oil prices also rose markedly as a result of the higher sunflower seed oil prices and the rising crude oil prices, with soy oil prices further underpinned by concerns over reduced exports by South America.
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FAO added that prices of sugar also rose by 6.7 per cent from February, reversing recent declines to reach a level more than 20 per cent higher than in March 2021.
According to FAO, higher crude oil prices were a driving factor, along with currency appreciation of the Brazilian Real, while favorable production prospects in India prevented larger monthly price increases.
“The meat price index increased by 4.8 per cent in March to reach an all-time high, led by surging pig meat prices related to a shortfall of slaughter pigs in Western Europe.
International poultry prices also firmed in step with reduced supplies from leading exporting countries following avian flu outbreaks,” the report added.”
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