Global food prices continue to rise due to high demand and reduced production. According to a report from the Food and Agriculture Organization (FAO), the food price index in March remained at 127.1 points, which is virtually unchanged from February. The decline in prices for grains and sugar offset the increase in prices for meat and vegetable oils.
This is reported by Finway
Currently, the FAO index is 6.9% higher than last year; however, it is lower than the peak value recorded in March 2022 following Russia’s full-scale invasion of Ukraine. The vegetable oil price index in March averaged 161.8 points, which is 3.7% higher than in February. This increase is linked to reduced supplies from major exporters and sustained demand.
The dairy price index remained stable at 148.7 points. However, butter prices rose by 3.9% compared to February due to high demand and seasonal supply reductions in Oceania, as well as low production in Europe. The grain price index in March stood at 109.7 points, which is 2.6% lower than the previous month, as concerns about harvests in some major Northern Hemisphere exporters have diminished.
The meat price index rose to 118 points, which is 0.9% higher than in February, primarily due to rising pork prices in the European Union. At the same time, the sugar price index fell to 116.9 points, which is 1.4% lower than in February, attributed to weakening global demand.
“Over the year, the price of butter has increased by 32.2%,” notes Oleg Pendzin, a member of the Economic Discussion Club.
He also emphasized that the main factors driving up the cost of dairy raw materials were the rising prices of feed due to the low harvest of 2024 and the increasing cost of electricity.