Chicken Prices May Rise Again... Global Food Prices Increase for Two Consecutive Months

UN Food and Agriculture Organization Announces April Food Price Index

Global food prices have risen for the second consecutive month.

According to the Ministry of Agriculture, Food and Rural Affairs on the 4th, the Food Price Index released by the United Nations Food and Agriculture Organization (FAO) last month was 119.1, up 0.3% from the previous month. This year, the global food price index has shown a trend of 117.7 → 117.4 → 118.8 → 119.1.

The FAO calculates and publishes the food price index monthly for five categories: grains, oils, meat, dairy products, and sugar. The index is based on the average prices from 2014 to 2016, set at 100 for comparison.

The meat price index rose 1.6% from the previous month to 116.3. Beef prices increased due to rising demand, and poultry prices rose as avian influenza (AI) outbreaks in the Middle East made production difficult, leading to increased import demand. On the other hand, pork prices fell due to decreased demand in Western Europe and China.

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The grain price index rose 0.3% from the previous month to 111.2. Corn prices increased due to higher demand amid logistical difficulties caused by the Russia-Ukraine war, and poor production forecasts in Brazil. Wheat prices remained stable due to competition among major exporting countries, while rice prices fell due to the harvest of Indica rice.

The oils price index rose 0.3% from the previous month to 130.9. Sunflower oil prices increased due to rising demand, and canola oil prices rose due to weather impacts in some European production areas. However, palm oil and soybean oil prices fell due to stagnant import demand and favorable production forecasts in South America, respectively.

The sugar price index fell 4.4% to 127.5. Prices dropped as sugar supply is expected to increase in India and Thailand. In Brazil, improved weather conditions alleviated some concerns about the harvest volume, and the depreciation of the Brazilian real against the US dollar also contributed to the sugar price decline.

However, the decline in prices was limited due to rising international crude oil prices and increased ethanol prices in Brazil.

The dairy price index fell 0.3% from the previous month to 123.7. While butter and whole milk powder prices rose, skimmed milk powder and cheese prices declined.