ROME (AP) – Global prices of food products such as grains and vegetable oils were the highest on record last year, even after falling for nine straight months, the United Nations’ Food and Agriculture Organization said. , drought and other factors. increasing inflation and worsening world hunger.
The FAO food price index, which tracks monthly changes in international prices of commonly traded food products, fell 1.9 percent in December compared to the previous month, the Rome-based organization said on Friday. For the full year, it averaged 143.7 points, over 14% above the 2021 average, which also saw big increases.
December’s decline was led by a decline in the price of vegetable oils due to lower demand for imports, expectations of higher soybean oil production in South America and lower crude oil prices. Cereals and meat also fell, while dairy and sugar rose slightly.
“Food prices are welcome after two very volatile years,” FAO chief economist Maximo Torero said in a prepared statement. “It is important to remain vigilant and maintain a strong focus on mitigating global food insecurity as world food prices remain at high levels, with many commodities near record levels and with rice prices rising and many risks associated with future supply. “
Last year, according to FAO data, the UN food price index reached its highest level since records began in 1961.
Russia’s invasion of Ukraine in February exacerbated a food crisis as the two countries were major global suppliers of wheat, barley, sunflower oil and other commodities, particularly to countries already facing famine in Africa, the Middle East and Asia.
With the disruption of the critical Black Sea supply, food prices have risen to record levels, increasing inflation, poverty and food insecurity in import-dependent developing countries.
The war has also shaken energy markets and fertilizer supplies, both essential to food production. This was in addition to climate shocks fueling famine in places like the Horn of Africa. Ethiopia, Somalia and Kenya are hard hit by the worst drought in decades, with the United Nations warning that parts of Somalia are facing famine. Thousands of people have already died.
Wheat and maize prices hit record highs last year, although they fell in December along with the costs of other grains, FAO said. He said harvests in the southern hemisphere boosted supplies and there was fierce competition among exporters.
The organization’s vegetable oil price index reached an all-time high last year, although it fell to its lowest level since February 2021 in December 2021. For the full year 2022, the FAO dairy price index also – dairy and meat were the higher since the 1990s. .
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