Food in the world continues to become cheaper

In January, prices for most types of products decreased. There are signs of an increase in supply and a decrease in demand.

World food prices continue to decline and in January compared to December 2023 decreased by 1%. This is reported in the monthly report of the FAO (Food and Agriculture Organization of the United Nations).

The document states that the December price index was revised.

In January, compared to December, the grain price index decreased by 2.2%. The fall in wheat prices is explained by competition between exporters, as well as the entry of grain from the Southern Hemisphere into the market. The price of corn has fallen sharply since the start of harvesting in Argentina, the report explains.

The meat price index decreased by 1.4%, and the decrease was recorded for the seventh month in a row. The fall in prices for poultry meat is associated with weak demand and a large supply. The price of pork fell due to a reduction in purchases by China while increasing its own production. Beef prices also fell, with lamb rising in price due to high import demand.

The oil price index increased by only 0.1%. With the increase in the price of palm and sunflower oil, the prices of soybean and rapeseed decreased.

The price index for dairy products practically did not change, compared to the revised December value. In January, international quotes for butter and whole milk powder rose mainly due to higher demand from Asian buyers, which almost offset lower prices for skimmed milk powder and cheese.

The sugar price index increased by 0.8%. The increase is due to concerns about insufficient rainfall in Brazil and the impact of this factor on the sugarcane crop. Unfavorable forecasts are also given for production in Thailand and India – the leading countries producing this product.

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