FAO data: Global decline in food prices in 2023
According to the figures released by the FAO (Food and Agriculture Organization of the United Nations), food commodity prices experienced a decline throughout the year 2023. This decrease in cost affected all food products, except for sugar and rice.
In December, the FAO Food Price Index dropped to 1.5% in December 2023, and over the entire year, FAO noted a decline of 13.7%.
The FAO Cereal Price Index increased by 1.5% in December compared to November, as the prices of wheat, maize, rice, and barley all rose, partly due to logistical disruptions that hindered shipments from major exporting countries.
Over the entire year, the index plummeted by 15.4% compared to the 2022 average due to ample market supplies. However, the rice index surged by 21% in 2023 due to the impact of the El Niño phenomenon on rice production and export restrictions imposed by India.
The FAO Vegetable Oil Price Index decreased by 1.4% in December compared to the previous month due to weak purchases of palm oil, soybean oil, rapeseed oil, and sunflower oil.
For the entire year of 2023, this index was 32.7% lower than the previous year.
The FAO Sugar Price Index fell by 16.6% in December, reaching a nine-month low. Nevertheless, over 2023, it increased by 14.9%.
The decline in international sugar prices is mainly attributed to the sustained pace of production in Brazil, as well as the reduction in using sugarcane for ethanol production in India.
The FAO Meat Price Index declined by 1% in December and by 1.8% over the entire year of 2023.
The FAO Dairy Price Index increased by 1.6% in December, but its value is still 16.1% lower than that of December 2022.
Neil Camara
