Global food prices declined last year, with the drop in prices for grains and sugar offsetting the increase in prices for vegetable oils, dairy products, and meat.
The composite index tracking global prices for cereals, vegetable oils, dairy products, meat, and sugar averaged 122 points last year. This represents a 2.1% decrease compared to the previous year, according to a report from the Food and Agriculture Organization (FAO) of the United Nations, published on Friday.
Grain prices fell by 13.3% over the year, marking the second significant decrease following the record levels of 2022. The price of sugar decreased by 13.2%. At the same time, vegetable oils became 9.4% more expensive due to reduced global supply.
Meat prices increased by 2.7%, with the highest price rises seen in beef, poultry, and lamb. In contrast, the price of pork fell. Dairy products rose in price by 4.7% over the year, mainly due to a sharp increase in butter prices.
In December, the composite index fell by 0.5% compared to November, reaching 127 points. Despite this, the index grew by 6.7% year-on-year but remained 20.7% below the record value from March 2022.
The decrease in the December index was mainly due to a drop in sugar prices, which fell by 5.1% over the month, thanks to improved sugarcane harvest prospects in key producing countries. Year-on-year, sugar became 10.6% cheaper.
Dairy prices, which had been rising for seven consecutive months, fell by 0.7% in December compared to November, although they remained 17% higher year-on-year. Vegetable oils decreased by 0.5% over the month, but their price increased by 33.5% over the year.
In December, global meat prices rose by 0.4% compared to November and by 7.1% year-on-year. Grain prices remained almost unchanged over the month but decreased by 9.3% compared to December of the previous year. A slight rise in corn prices was offset by a drop in wheat prices.
