The United Nations Food and Agriculture Organization (FAO) has reported that the world price index for food commodities reached its lowest point in two years in May.
This decline was primarily driven by significant drops in the prices of vegetable oils, cereals, and dairy, which outweighed modest increases in sugar and meat prices.
According to the FAO, the price index, which monitors the global trade of key food commodities, averaged 124.3 points in May, compared to a revised figure of 127.7 in the previous month.
This decrease marks the lowest reading since April 2021 and represents a 22% decline from the all-time peak recorded in March 2022 when Russia initiated its invasion of Ukraine.
In a separate report focusing on cereal supply and demand, the FAO projected that global cereal production for the current year would reach approximately 2.813 billion tonnes, reflecting a 1% increase compared to 2022. The rise is primarily attributed to an anticipated growth in maize output.
The FAO’s latest findings highlight the ongoing volatility in food prices and the complex factors influencing global food markets.
Monitoring these fluctuations is crucial for policymakers and stakeholders in addressing food security challenges and making informed decisions regarding agricultural production and trade.