The average global food price index, as calculated by the FAO, witnessed a decline in August, according to a report released on Friday. This decrease was characterized by significant variations among different commodities, with butter prices experiencing a surge while sugar prices fell.
The Food and Agriculture Organization (FAO) of the United Nations stated that its food price index, which monitors changes in international prices for a basket of staple foods, was “1.1% lower than its level a year ago and 24.7% below its peak from March 2022.”
This average conceals considerable disparities: “lower sugar, meat and cereal quotations offset higher dairy and vegetable oil prices,” the organization noted.
Specifically, global butter prices surged to an “all-time high,” driven by rising uncertainty surrounding milk supplies in Western Europe.
The vegetable oil index reached its highest point since January 2023 due to tensions affecting palm oil production in Indonesia, the world’s leading producer, where output “has remained below its full potential.”
Despite a poor harvest in Western Europe, wheat prices continued to decline last month, due to “sluggish international demand and strong competition among exporters, especially from competitively priced Black Sea supplies.”
“Higher-than-previously-expected wheat production in Argentina and the United States of America also contributed to the softer price tone,” the organization emphasized.
Regarding sugar, prices fell to their lowest level since October 2022, a reduction attributed by the FAO “mainly driven by the improving production outlook for the 2024/25 season in Thailand and India, following favorable rainfall that benefited sugarcane crops.”
Meat prices also eased, with the exception of beef.
