Global food prices rise for the first time in a year, according to UN food agency

ROME, May 5 (Reuters) – The United Nations food agency’s global price index rose for the first time in a year in April, but is still about 10% after hitting a record high in March 2022 following Russia’s invasion of Ukraine. It’s down 20%.

The Food and Agriculture Organization (FAO) price index, which tracks the world’s most traded foods, was 127.2 points last month compared with 126.5 in March, the agency said on Friday. Originally given as 126.9.

The Rome-based agency said April’s rise reflected higher prices for sugar, meat and rice, which offset lower price indexes for grains, dairy and vegetable oil.

FAO chief economist Maximo Torero said: “As the economy recovers from a significant slowdown, demand will increase, putting upward pressure on food prices.

The sugar price index rose 17.6% from March to its highest level since October 2011. FAO said the rise was linked to concerns about tighter supplies following downward revisions to production forecasts in India and China. in Thailand and the European Union.

The meat index rose 1.3% month-on-month, dairy prices fell 1.7%, vegetable oil prices fell 1.3% and grain price indexes fell 1.7%. Falling world prices for all major grains outweighed rising rice prices. .

“Rice price hikes are very worrying and it is imperative that the Black Sea Initiative be updated to avoid other price hikes in wheat and maize,” Torero said, adding that Ukrainian grains could be exported via the Black Sea. He referred to a transaction permitting the export of

In a separate report on cereal supply and demand, FAO forecasts global wheat production of 785 million tonnes in 2023, slightly below 2022 levels but still the second largest on record. production volume.

“Prospects for equatorial and southern rice production in 2023/24 are mixed, mainly due to regional differences in the impact of La Niña,” FAO said.

FAO has raised its forecast for global cereal production in 2022 from 2,777 million tonnes to 2,785 million tonnes. This is a mere 1.0% decrease from the previous year.

According to FAO, global cereal use in the period 2022/23 was 2.78 billion tonnes, down 0.7% from 2021/22. By the end of the 2022/2023 season, global cereal stocks are expected to fall by 0.2% to 855 million tonnes from their starting levels.

(This article has been modified in paragraph 1 to say “one year” instead of “one year”)

Editing by Crispian Ballmer

Our Standards: Thomson Reuters Trust Principles.

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