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January 20, 2022 Segunpreneur Comments: 368 Blog, Tropical Fruit
The New Circular Food Economy

World food prices fell slightly in December as international prices for vegetable oils and sugar fell significantly from lofty levels, the Food and Agriculture Organization of the United Nations reported today.

The FAO Food Price Index averaged 133.7 points in December, a 0.9 percent decline from November but still up 23.1 percent from December 2020. The index tracks monthly changes in the international prices of commonly-traded food commodities. Only the dairy sub-index posted a monthly rise in December.

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Mary Doe

The FAO Cereal Price Index decreased 0.6 percent from November, as falling wheat export quotations amid improved supplies following southern hemisphere harvests more than offset firmer maize prices underpinned by strong demand and concerns over persistent dryness in Brazil. 

The FAO Vegetable Oil Price Index declined 3.3 percent in December, with weaker quotations for palm oil and sunflower oil reflecting subdued global import demand that may be linked to concerns over the impact of rising COVID-19 cases. For 2021 as a whole, the FAO Vegetable Oil Price Index reached an all-time high, increasing 65.8 percent from 2020.

Fruits and Vegetables

The FAO Sugar Price Index decreased by 3.1 percent from November, reaching a five-month low, reflecting concerns over the possible impact of the Omicron COVID-19 variant on global demand as well as a weaker Brazilian Real and lower ethanol prices. For 2021 as a whole, the FAO Sugar Price Index rose 29.8 percent from the previous year to its highest level since 2016.

The FAO Dairy Price Index was the only sub-index to increase in December, rising 1.8 percent from the previous month, as international quotations for butter and milk powders increased amid lower milk production in Western Europe and Oceania. Cheese prices declined marginally, reflecting a preference for Western Europe dairy producers. In 2021, the FAO Dairy Price Index averaged 16.9 percent higher than in 2020. 

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