Over the year, world food prices fell by 11%

World prices for grains and meat fell, while those for vegetable oils, sugar and dairy products rose, FAO reported on December 8.

Food and Agriculture Organization of the United Nations FAO* reported on Friday that world food prices in November this year, compared with the same month last year, fell by 10.7%, but compared with the revised October level they remained at the same level.

The FAO Food Price Index, which tracks monthly changes in international prices for a range of globally traded food products, stood at 120.4 points in November.

The grain price index was 3% below the October level and 19.4% below last year’s record value. World prices for feed grains decreased more than anything else in a month – by 5.6%, which was due to a sharp drop in world prices for corn.

Compared to October, after three months of continuous decline, the vegetable oil price index increased by 3.4%, which is associated with an increase in world prices for palm and sunflower oil, which more than compensated for the decrease in soybean and rapeseed quotations.

The price index for dairy products in November, compared to the previous month, increased by 2.2%. The growth lasts for the second month in a row, but in annual terms prices decreased by 16.9%.

In November, an increase in world quotations of butter and skimmed milk powder was recorded. Experts attribute it to high import demand from Northeast Asian countries, limited supplies and increased domestic demand on the eve of the winter holidays in Western Europe.

The meat price index in November was 0.4% lower compared to the same month last year – 2.4%. These figures reflect a slight decline in prices for poultry, pork and beef.

The sugar price index in November increased by 1.4% compared to October and by 41.1% in annual terms. The increase in sugar prices recorded in November is due to increasing concerns about the reduction in global export supply this season amid deteriorating harvests in Thailand and India, which are its main exporters.

*The FAO Food Price Index is a weighted average that tracks the dynamics of international prices for five major food commodity groups.

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