Canada _ (Commonwealth Union) _ According to the U.N. Food and Agriculture Organization, global prices for food commodities such as grains and vegetable oils reached their highest levels ever last year even though they had been declining for nine months in a row. This was due to the Russian military conflict in Ukraine, a drought, and other factors that increased inflation and made hunger more severe in all countries.
The FAO Food Price Index, which analyzes monthly changes in the international prices of widely traded food items, fell by 1.9% in December compared to a month earlier, the Rome-based agency reported on Friday. It averaged 143.7 points for the whole year, which is more than 14% more than the similarly increased average for 2021.
The price of vegetable oils fell in December, which contributed to the overall fall, along with reduced crude oil prices, projections of increasing soy oil supply in South America, and a decline in import demand. Additionally, grain and meat declined, but dairy and sugar saw a tiny increase.
After two years of extreme volatility, lower food commodity prices are welcome, said FAO Chief Economist Maximo Torero in a prepared statement. Given that world food prices are still high, several staples are at or near record high prices, rice prices are rising, and there are still numerous dangers related to future supply, it is crucial to maintain vigilance and maintain a strong focus on reducing global food poverty.
According to FAO data, the Food Price Index for the U.N. agency reached its highest-level last year since records first began in 1961. Because Russia and Ukraine were the world’s top producers of wheat, barley, sunflower oil, and other products, particularly for countries in parts of Africa, the Middle East, and Asia that were already experiencing a food crisis, the two countries’ invasion of Ukraine in February exacerbated a food crisis. Due to the disruption of crucial Black Sea supplies, food prices increased to all-time highs, causing inflation, poverty, and food insecurity in poor countries that depend on imports.
Despite falling to its lowest point since February 2021 in December, the organization’s Vegetable Oil Price Index reached an all-time high last year. The FAO Meat Price Index and Dairy Price Index for the entire year of 2022 both reached record highs.
