After 7 Months Down, World Food Prices Rise In March

Food prices (photo: dock. Antara)

JAKARTA - The United Nations Food and Agriculture Organization (FAO) said the Main Food Price Index, which tracks monthly changes in the prices of five main food groups, increased in March. This happened after seven months of decline.

Quoting Antara, FAO stated that the Main Food Price Index reached 118.3 points in March 2024, up 1.3 points (1.1 percent) from its revised level in February, as the vegetable oil price index increased, milk and meat products were slightly larger than the decline in the sugar and vegetable price index.

The index, although noted its first increase in March following a seven-month downward trend, fell 9.9 points (7.7 percent) from its similar value last year, FAO said in its monthly report.

The vegetable Oil Price Index is the food index which experienced the largest increase, an increase of 9.7 percentage points (or 8 percent) to 130.6 points compared to February, according to FAO.

FAO added that the prices of palm oil, soybeans, sunflowers, and palm oil are the most increased.

Then, the FAO Brand Price Index averaged 124.2 points in March up 3.5 points (2.9 percent) from February, marking a sixth consecutive monthly increase, but still 11.1 points (8.2 percent) below its value in the same month last year.

In March, world cheese prices experienced the biggest increase, reflecting stable import demand from Asia.

The higher internal sales of cheese in Western Europe led to production declines in the spring, and seasonally in Oceania, according to the food agency.

The Meat Price Index increased by 1.9 points (1.7 percent) in the month to 113.0 points.

FAO added that there was an increase in the price of world poultry meat driven by stable demand in importing countries. As well as, the high supply due to the reduced number of poultry due to influenza outbreaks in producing countries.

The FAO Cereal Price Index averaged 110.8 points in March, down 3.0 points (2.6 percent) from February and 27.7 points (20.0 percent) below the value of its product in March 2023.

Global grain export prices declined for three consecutive months in March, largely due to strong export competition continuing between the European Union, the Russian Federation, and the United States.

Sugar Price Index fell by 7.6 points (5.4 percent) in March after a two-month increase and reached 133.1 points.

The decline was mainly due to a revised Indian sugar production forecast for 2023-2024, a better sugar harvest rate in Thailand, and the size of exports from Brazil.