Friday, 05 February 2021 14:55

Food prices rise sharply in January

Written by  Staff Reporters
The FAO Food Price Index shows a 6.8% rise in the price of wheat. The FAO Food Price Index shows a 6.8% rise in the price of wheat.

The FAO Food Price Index averaged 113.3 points, rising 4.3% to reach its highest level since July 2014.

The Food and Agriculture Organisation of the United Nations (FAO) Food Price Index tracks monthly changes in the international prices of commonly-traded food commodities.

The FAO Cereal Price Index showed a sharp 7.1% monthly increase, led by international maize prices, which surged 11.2% and are now 42.3% above their January 2020 level, reflecting increasingly tight global supply amid substantial purchases by China and lower-than-expected production and stock estimates in the United States of America as well as a temporary suspension of maize export registrations in Argentina.

Wheat prices rose 6.8%, driven by strong global demand and expectations of reduced sales by Russia when its wheat export duty doubles in March 2021.

The FAO Vegetable Oil Price Index increased 5.8% in the month to its highest level since May 2012. Drivers include lower than expected palm oil production in Indonesia and Malaysia due to excessive rainfall and ongoing shortages in the migrant labour force, and prolonged strikes in Argentina reducing export availability for soy oil.

The FAO Sugar Price Index was 8.1% higher than in December, as robust global import demand spurred concerns about lower availabilities due to worsening crop prospects in the European Union, Russia and Thailand, as well as drier than normal weather conditions in South America.

The FAO Dairy Price Index increased by 1.6%, underpinned by China’s high purchases ahead of the country’s upcoming New Year holiday festivities amid seasonally lower exportable supplies in New Zealand.

The FAO Meat Price Index was up 1% from December, led by brisk global imports of poultry meat, especially from Brazil, amid avian influenza outbreaks that have constrained output and exports from several European countries.

More like this

Pledge to end child labour in agriculture

The director-general of the Food and Agriculture Organisation of the United Nations (FAO), Qu Dongyu, has pledged to intensify efforts toward addressing child labour in agriculture through a dedicated work programme.

Food supply okay, trade vital

Global demand for agricultural products is projected to grow by 15% over the coming decade, while agricultural productivity growth is expected to increase slightly faster.

National

West Coast resilience tested

DairyNZ head consulting officer in the South Island, Tony Finch, says his first priority has been to get an accurate…

New red meat awards

A chance to celebrate all the good work being done in the red meat sector and tell this to the…

They have a point!

Beef+Lamb NZ chair Andrew Morrison says he understands why the Groundswell protest was so big.

We messed up - Minister

Agriculture Minister Damien O'Connor admits the Government "made mistakes" with its initial freshwater farm plans.

Machinery & Products

Keen on easy-to-use spaceship

Reporoa based Murdoch Agricultural Contracting, owned and operated by couple Harry Murdoch and Samantha Parker, started by targeting a niche.

One-pass cultivator moves 70% less soil

According to Kverneland distributor, Power Farming, the KultiStrip system will bring opportunities to farm environmentally, while improving yields and profitability.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Real or reel?

OPINION: Your canine crusader reckons people should be very skeptical of video footage supplied to TV news by vested interests.

It's coming!

OPINION: This old mutt reckons the 'woke' epidemic - currently rife in left wing and government circles - is now…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter