Belfast (Business Emerge), September 6: Global food prices experienced a slight decrease in August, driven primarily by falling sugar, meat, and cereal prices, according to recent data. This dip was able to balance out the upward trend in dairy and vegetable oil prices, offering some relief on the global food market.
The food price index, a key metric compiled by the Food and Agriculture Organization (FAO) to monitor internationally traded food products, fell to 120.7 points in August. This represents a slight drop from a revised 121 points in July. The FAO index reached its lowest level in three years back in February after peaking in March 2022 due to the impacts of the conflict in Ukraine.
Additionally, the August index value was 1.1% lower compared to the same period last year, marking a notable 24.7% decrease from its peak in March 2022.
In a separate analysis, FAO revised its global cereal production outlook for 2024, reducing the forecast by 2.8 million metric tons to a projected total of 2.851 billion tons. This brings global production close to last year’s level. The decline is largely attributed to unfavorable weather conditions such as excessive heat and drought, which affected coarse grain yields in regions like the European Union, Mexico, and Ukraine.
Furthermore, the FAO adjusted its prediction for global cereal use for the 2024/25 period, reducing it by 4.7 million tons to 2.852 billion tons. This represents a minor 0.2% increase over the previous year. Similarly, the organization revised down its projection for world cereal reserves by 4.5 million tons, bringing the expected total to 890 million tons by the close of the 2025 season.