World Food Prices Reach 7 Year High

The UN Food and Agriculture Organization’s (FAO) food price index revealed that local food commodity prices rose in March, marking their tenth consecutive monthly increase which is the highest in 7 years.

“The FAO Food Price Index averaged 118.5 points in March, 2.1 percent higher than in February and reaching its highest level since June 2014,” said the FAO report.

According to the FAO, vegetable oils, meat, and dairy indices have spiked the most during 10 months. 

The FAO Vegetable Oil Price Index rose 8.0 percent, the Dairy Price Index by 3.9 percent, and the Meat Price Index by 2.3 percent since February.

Apart from the spikes, the FAO Cereal Price Index dropped by 1.8 percent, but it is still 26.5 percent higher than in March 2020 while the FAO Sugar Price Index declined 4.0 percent in the month but is also 30 percent higher the year before.

The FAO predicted that world cereal production in 2021 will increase for the third consecutive year with wheat production estimated to reach 785 million tonnes, while above-average outputs are also expected for maize. 

Higher cereal usage and trade were also forecast due to high demand in China but global stocks are expected to dip by 1.7 percent from their opening levels to 808 million tonnes, another 7-year low. 

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