In December 2023, theFood and Agriculture Organization of the United Nations (FAO) revealed significant changes in the prices of food raw materials globally, with some sectors declining and others growing. The FAO Food Price Index averaged 118.5 points, showing a decrease of 1.5% compared to November and 10.1% compared to December 2022.
Food raw materials: price trends in 2023
Cereals
The grain price index increased by 1.5% due to higher prices of wheat, corn, rice and barley. This increase was influenced by logistical disruptions that hindered shipments from major exporting countries. Despite this, the annual index remained 15.4% below the 2022 average, indicating global markets well stocked.
Vegetable oil
The price index ofvegetable oil decreased by 1.4%, mainly due to declines in purchases of palm oil, soybean, rapeseed and sunflower seeds. The slowdown in demand for soybean oil in the biodiesel sector and the improvement of climatic conditions in Brazil have contributed to this decline. The annual index was 32.7% lower than the previous year’s level.
The price index of sugar recorded a decrease of 16.6% compared to November, hitting a nine-month low. However, it is still up 14.9% compared to December 2022. Accelerated production in Brazil and reduced use of sugarcane for ethanol production in India were the main drivers of this decline.
Meat
The price index of meat recorded a decline of 1.0% in December, influenced by weak demand for pork imports from Asia. Regional purchases of beef and poultry have also slowed, despite ample exportable supplies. However, sheepmeat prices have increased ahead of the holidays.
Dairy products
In contrast to the negative trends, the price index of dairy products it grew 1.6% in December. While remaining 16.1% lower than December 2022, this monthly increase was driven by higher prices for butter and cheese, supported by strong domestic sales in Western Europe and growing global demand for whole milk powders.
Source FAO
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