Global food prices hit a record high in February.
Higher prices for vegetable oils and dairy products, as well as rising grain costs, have contributed to record prices, according to the Food and Agriculture Organization of the United Nations.
The FAO food price index averaged 140.7 points last month. This beats the previous record set in February 2011.
February’s index was up 3.9% from January and 24.1% from the index a year ago.
The Food Price Index tracks international prices for items such as vegetable oils, dairy products, grains and more.
“Concerns over crop conditions and adequate exportable supplies explain only part of the current rise in global food prices. A much larger push in food price inflation is coming from external food production, particularly from the energy, fertilizer and animal feed sectors,” FAO economist Upali Galketi said. Arachilla. “All of these factors tend to reduce profit margins for food producers, discouraging them from investing and increasing production.”
The FAO Food Price Index measures average prices over the month, so February’s reading only partially incorporates market effects stemming from the conflict in Ukraine.
The FAO Vegetable Oil Price Index led the rise, rising 8.5% from the previous month to a new record high, mainly due to higher quotations for palm, soybean and sunflower oils.
The FAO Dairy Price Index rose by an average of 6.4% in February compared to January, supported by lower-than-expected milk supplies in Western Europe and Oceania, as well as persistent import demand , especially from North Asia and the Middle East.
The FAO Cereal Price Index rose 3% from the previous month, led by higher quotations for coarse grains, as international maize prices rose 5.1%, due to a combination of continued concerns about crop conditions in South America, uncertainty about corn exports from Ukraine, and rising wheat export prices.
Global wheat prices rose 2.1%, largely reflecting uncertainty surrounding global supply flows from Black Sea ports.
International rice prices increased by 1.1%, supported by strong demand for fragrant rice from buyers in Near East Asia and currency appreciation of some exporters against the US dollar.
The FAO Meat Price Index rose 1.1% from January as international beef quotations hit a new record high amid strong global import demand and shortages of market-ready cattle. culling in Brazil and strong demand for restocking in Australia. While pigmeat prices increased slightly, sheepmeat and poultrymeat prices fell, partly due to large exportable supplies in Oceania and reduced imports from the China after the end of the Spring Festival.
The FAO Sugar Price Index fell 1.9% amid favorable production prospects in major exporting countries such as India and Thailand, as well as better growing conditions in Brazil.
The FAO has also released a preliminary forecast which shows that world cereal production is set to increase significantly this year.
Visit the FAO website to learn more about the food price index and the organization’s cereal supply and demand summary.