Global food prices fall for fifth consecutive month in January

Global food commodity prices fell for the fifth consecutive time in January, led by lower international quotations for dairy, sugar and meat products, according to the United Nations’ Food and Agriculture Organisation (FAO).

The FAO food price index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 123.9 points in January, down 0.4 percent from the previous month and 0.6 percent from its level a year earlier.

Dairy prices slowed the most during the period among the five commodities. Its prices dropped by 5 percent month-on-month, driven largely by lower prices for cheese and butter amid ample availability.

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“Meanwhile, world skim milk powder prices firmed, supported by renewed import demand from the Near East, North Africa and parts of Asia,” the report said.

Similarly, sugar prices fell by one percent in January. The FAO pins the fall to expectations of increased supplies in the current season, underpinned by a significant production rebound in India, favourable prospects in Thailand, and an overall positive production outlook in Brazil.

Maintaining a price decline streak, meat prices declined by only 0.4 percent in the month under review. This was spearheaded by lower pig meat quotations amid ample global supplies and subdued international demand.

For commodities that surged in January, vegetable oil leads the pack with 2.1 percent in January.

Read also: Staple food prices drop, cooking oils rise in January

The reason, according to the FAO, is that “world palm oil prices rose amid seasonal production slowdowns in Southeast Asia and firm global import demand”.

Meanwhile, cereal benchmark saw a 0.2 percent rise from December, despite marginal declines in world wheat and maize prices.

“Ample wheat stocks offset weather-related concerns affecting dormant crops in the Russian Federation and the United States of America.”

Also, the FAO reports that rice index rose by 1.8 percent from December, reflecting firmer demand for fragrant rice varieties

Feyishola Jaiyesimi covers agriculture and environment trends at BusinessDay, Nigeria’s leading daily newspaper focused on economy and finance. Her stories draw on investigative journalism, and she has been selected for professional training by the US Embassy, Lagos, and Dataphyte. Feyishola holds a bachelor’s degree in Zoology and Environmental Biology from Ekiti State University.

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