FAO: Global food prices up 32.8% year-on-year in September

In September 2021, world food prices increased by 1.2% compared to August, the FAO index reached 130 points. In annual terms, price growth amounted to 32.8%, reported the FAO (Food and Agriculture Organization of the United Nations).

The increase in prices in the FAO was associated primarily with the rise in prices of most cereals and vegetable oils. SUGAR and dairy products also rose in price, while the MEAT price index remained at the same level.

The grain price index in September was 132.5 points, which is 2.6 points (2%) higher than in August and 28.5 points (27.3%) higher than in September 2020. The highest growth was shown by world prices for wheat - 4% higher than in August, and 41% more than a year earlier.

“The increase in international wheat prices was facilitated by a further reduction in EXPORT supply against the backdrop of strong global demand,” the report explains.

The price index for vegetable oils in September was 168.6 points, which is 2.9 points (1.7%) higher compared to the previous month and about 60% higher than the same period last year. This growth is primarily due to the increase in quotations of palm and rapeseed oils, while quotations of soybean and sunflower oils decreased. “International palm oil prices have risen for the third month in a row and reached their highest levels in ten years,” the report says.

The price index for dairy products in September amounted to 117.9 points. This is 1.7 points (1.5%) higher than in August and 15.6 points (15.2%) more than in September 2020. In September, international quotations of all types of dairy products included in the index increased, while prices for skimmed MILK powder and butter showed a sharp increase . This is due to strong global import demand and limited export supply, especially in Europe.

Meat price index in September amounted to 115.5 points. it practically did not change compared to the revised value for August, but exceeded the corresponding indicator of the previous year by 24.1 points (26.3%).

The sugar price index in September was 121.2 points, which is 0.6 points (0.5%) higher than in August and 42.2 points (53.5%) higher than a year ago. World sugar prices continued to rise amid fears that production in Brazil (the world's largest sugar exporter) would be reduced due to prolonged drought and frost.

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The FAO Food Price Index is a weighted average that tracks international price movements for five major food commodity groups.