Whilst global food prices have fallen for the third month in a row, across many food categories, costs remain far higher than rates recorded in previous years.
According to the United Nations, the global Food Index has fallen to 154.2 points in June. This marks a 3.4% decline from the Index’s all-time high of 159.7 points in March.
Chief economist at the Food and Agriculture Organisation (FAO), Maximo Torero Cullen, said that the factors that initially prompted global food prices to soar “are still in play.”
Cereals
Figures from June suggest that the Global Cereal Index saw a decline of 4.1%, but remained 27.6% higher than rates recorded in 2021. According to the FAO, the decline in June was driven by seasonal availability from new harvests in the northern hemisphere, improved crop conditions in some major producers, including Canada, higher production prospects in the Russian Federation, and slower global import demand.
Meat
The FAO Meat Price Index averaged 124.7 points in June, up 2.1 points from May, setting a new record high and exceeding its June 2021 value by 14 points.
FAO explained that world prices across all meat types has increased, with poultry quotations rising sharply, reaching an all-time high, underpinned by the continued tight global supply conditions impacted by the war in Ukraine and the Avian Influenza outbreaks in the Northern Hemisphere.
Bovine meat prices have also edged up, as China lifted its import restrictions for purchases from Brazil.
Pig meat prices recovered slightly on higher imports by several leading importers, amid continued low purchases by China. International ovine meat prices also bounced back on lower exportable volumes from New Zealand, notwithstanding subdued demand from Northern Asia.
Dairy
In June, international prices of all dairy products increased. Quotations for cheese rose the most, underpinned by a surge in import demand for spot supplies amid market concerns over supply availabilities later in the year, as the early summer heat wave further weighed on already low milk output in Europe.
International butter prices recovered as market uncertainty over milk deliveries in the months ahead bolstered foreign purchases as well as internal demand in Europe.
