Friday, 08 January 2021 09:52

World food prices rise for seventh consecutive month

Written by  Staff Reporters
Export prices for wheat, maize, sorghum and rice all rose in December. Export prices for wheat, maize, sorghum and rice all rose in December.

World food prices rose for the seventh consecutive month in December, the Food and Agriculture Organisation of the United Nations (FAO) reports.

The FAO Food Price Index averaged 107.5 points in December, 2.2% higher than in November.

Over the whole of 2020, the benchmark index, which tracks monthly changes in the international prices of commonly traded food commodities, averaged 97.9 points, a three-year high and a 3.1% increase from 2019.

The FAO Dairy Price Index increased 3.2% in December, marking its seventh consecutive monthly rise.

The FAO attributes this to a strong global import demand stimulated by concerns over drier and warmer conditions on Oceania's milk production as well as high internal demand in Western Europe.

Over the course of 2020, the Dairy Price Index averaged 1.0% lower than in 2019.

The FAO Meat Price Index increased 1.7% in December, while its full-year average was 4.5% below that of 2019.

Poultry meat quotations rebounded, buoyed by increased import demand out of regions like the Middle East, high internal sales in key producing countries and the adverse impact of avian influenza outbreaks in Europe.

Pig meat prices fell slightly, influenced by the suspension of German exports to Asian markets as a result of African Swine Fever outbreaks.

The FAO Vegetable Oil Price Index gained 4.7% in December to reach its highest level since September 2012.

In addition to ongoing supply tightness in major palm oil producing countries, international trade was affected by a sharp hike in export duties in Indonesia.

International prices for soy oil rose in part due to prolonged strikes in Argentina that impacted both crushing activity and port logistics.

The FAO Cereal Price Index rose 1.1% from November and for all of 2020 averaged 6.6% above the level of 2019.

Export prices for wheat, maize, sorghum and rice all rose in December, moving higher in part due to concerns over growing conditions and crop prospects in North and South America as well as Russia.

On an annual basis, rice export prices were 8.6% higher in 2020 than in 2019.

The FAO Sugar Price Index declined 0.6% in December after a marked increase during the previous month.

For 2020 as a whole, the sub-index was 1.1% higher than in 2019, reflecting a large surge in imports by China and increased demand for refined sugar from Indonesia's food and beverage industry.

More like this

FAO Food Price Index inches up

The benchmark for world food commodity prices increased for the third consecutive month in May, as higher prices of cereals and dairy products outweighed decreases in quotations for sugar and vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) reports.

Let's take our hats off to dairy farmers!

It’s World Milk Day today (June 1), a time to celebrate the vital role that milk, and dairy products play in our lives and acknowledge the tremendous contributions of the New Zealand dairy sector.

Featured

Top innovators announced

The Fieldays Innovation Award winners have been announced with Auckland’s Ruminant Biotech taking out the Prototype Award.

National

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Are they serious?

OPINION: The Greens aren’t serious people when it comes to the economy, so let’s not spend too much on their…

A hurry up!

OPINION: PM Chris Luxon is getting pinged lately for rolling out the old 'we're still a new government' line when…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter