Dairy and Oil Prices Surge Over 20% in One Year
The Ministry of Agriculture, Food and Rural Affairs announced on the 8th that the global food price index released by the United Nations Food and Agriculture Organization (FAO) last month rose by 1.6% from the previous month to 127.1.
The global food price index in February rose by 8.3% compared to the same month last year. Sugar and dairy products led the increase in the food price index. The sugar price index stood at 118.5, soaring 6.6% compared to the previous month due to concerns over supply shortages. The photo shows the sugar sales section at a large supermarket in downtown Seoul. Photo by Yonhap News.
The index is a figure that compares prices based on the average prices from 2014 to 2016 set at 100. It fell for two consecutive months in December last year and January this year but rose again in February.
The global food price index in February increased by 8.3% compared to the same month last year. Sugar and dairy products led the rise in the food price index. The sugar price index soared 6.6% from the previous month to 118.5 due to concerns over supply shortages.
India's sugar production forecast declined, and production decreases are also feared in Brazil due to adverse weather conditions. The depreciation of the Brazilian real also affected Brazil's sugar exports.
The dairy price index rose 4.0% from the previous month to 148.7. It increased by 23.2% compared to one year ago (120.7).
Cheese prices rose due to seasonal production decreases in the Oceania region. Butter and skimmed milk powder prices also increased due to reduced milk production in Oceania and increased international demand.
The price index for oils and fats, including palm oil, rapeseed oil, soybean oil, and sunflower oil, rose 2.0% to 156.0. This is a 29.0% increase compared to one year ago (120.9).
Palm oil prices rose due to seasonal production decreases in major Southeast Asian producing countries and expectations of increased biodiesel demand in Indonesia. Soybean oil prices increased globally due to rising demand, and sunflower oil and rapeseed oil prices rose as supply shortages are anticipated.
The cereal price index rose 0.7% to 112.6.
Wheat prices increased due to limited supply caused by shortages in Russia. Additionally, concerns about crop conditions due to adverse weather in parts of Europe, Russia, and the United States also influenced the rise in wheat prices.
Corn prices rose due to supply shortages in Brazil and deteriorating crop conditions in Argentina.
The meat price index remained the same as the previous month at 118.0.
Poultry and pork prices fell due to increased supply. Beef prices saw limited increases as demand rose but supply was sufficient.
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