Global food prices are down 2.1% in 2024 compared to the previous year, mainly due to lower world prices for cereals and sugar, according to FAO.
The price index calculated by the Food and Agriculture Organization of the United Nations (FAO), which tracks changes in international prices of a basket of commodities, has fallen by 13.3 percent for cereals compared to 2023 and by 13.2 percent for sugar over the same period.
These declines were partly offset by higher prices for vegetable oils (+9.4%), dairy products (4.7%, driven in particular by butter prices) and meat (2.7%), AFP reported.
Following the sharp rise in cereal prices, especially wheat, following Russia's invasion of Ukraine, prices on international markets are gradually falling to their pre-war levels.
In December 2024, wheat export prices remained broadly stable: "downward pressure exerted by weak international demand and increased seasonal supply from harvests in Argentina and Australia was offset by upward pressure from poor winter crop conditions in Russia," explains the FAO monthly report.
World maize prices rose slightly, "supported by a slight increase in export sales and tight supply in the US, as well as strong demand for maize of Ukrainian origin".
Among other coarse grains, world prices for barley rose while those for sorghum fell.
Rice prices fell slightly (-1.2%) in December due to a "slowdown in demand" for aromatic rice, but rose slightly over the year (+0.8%), supported in particular by imports from several Asian countries in the first nine months of 2024.
The fall in sugar prices was mainly due to "record exports from Brazil during the year" and "a positive outlook for world supply in the 2024/25 campaign".
Despite the very slight decline in December, annual oil prices remain high, driven by palm oil amid "tight global supply". | BGNES
