FAO: Global food prices are rising

The Food and Agriculture Organization of the United Nations has published a monthly report on the Food Price Index (FFPI), which says that food prices are rising.

In November, the FFPI index averaged 134.4 points, which is 1.6 points or 1.2% more than in October. While the increase from October to November this year doesn't seem like much, the FFPI is up 28.8 points or 27.3% from November 2020.

This latest increase marks the fourth month in a row that prices have risen, FAO said. The index is at its highest level since June 2011.

Among food products, the largest growth was recorded for cereals and dairy products, as well as for sugar. Prices for meat and vegetables decreased compared to the previous month. 

In November, the FAO Meat Price Index averaged 109.8 points, down 1.0 points or 0.9% from October. Although the meat price index has fallen for the fourth month in a row, it is still 16.5 points or 17.6% higher than the value of November last year.

Last month, international quotations for pork fell for the fifth month in a row. FAO has cited declining purchases by China, especially from Europe, as the driving factor behind the downturn.

International beef prices remained firm as lower quotations for Brazilian meat were offset by higher Australian export values ​​reflecting low sales of cattle for slaughter amid strong demand for cattle as part of the herd recovery.

The FAO report said that poultry meat prices were also largely stable as global supplies appeared to be sufficient to meet demand despite supply-side constraints, especially lack of shipping containers and avian flu in Europe and Asia.

In November, the dairy price index averaged 125.5 points, up 4.1 points or 3.4% from October. Since November last year, the dairy price index rose by 20.2 points or 19.1%.

Due to limited global stocks, international quotations for butter and milk powder rose sharply in November for the third month in a row. Robust global demand has been maintained in part due to market uncertainty and expectations of a tightening supply situation.