RISE IN GLOBAL FOOD PRICES

The global food price index hit its highest level in February, driven mainly by higher prices for vegetable oils and dairy products, the UN Food and Agriculture Organization said on Friday. agriculture (FAO).

”The FAO Food Price Index averaged 140.7 points in February, 3.9 percent higher than in January, 24.1 percent above its value of a year ago and 3.1 points more than its level reached in February 2011”, she says.

The UN organization, which has just published its food price index, explains that ”this increase is mainly attributable to the FAO vegetable oil price index”. This recorded an increase of 8.5 percent compared to last month, reaching ”a new record level, mainly due to higher prices for palm, soybean and sunflower oils”.

The publication says the sharp rise in the FAO Vegetable Oil Price Index stems ”primarily” from ”sustained global import demand”. But there are also ”a few factors on the supply side, including tight palm oil export availabilities in Indonesia, the world’s largest exporter, weaker prospects for soybean production in South America and fears of a drop in sunflower oil exports due to disruptions in the Black Sea region.

The FAO Dairy Price Index, meanwhile, ‘showed an average value in February up 6.4 percent from January, driven by weaker-than-expected milk supply. in Western Europe and Oceania, as well as continued import demand, particularly in North Asia and the Middle East.

The FAO Cereal Price Index rose 3.0 percent from the previous month, largely due to higher coarse grain prices. International maize prices for their part “increased by 5.1 percent, under the combined effect of continued fears regarding growing conditions in South America, uncertainties regarding maize exports from Ukraine and rising wheat export prices”.

World wheat prices rose 2.1 percent, ”an increase largely explained by uncertainties regarding the flow of global supplies from Black Sea ports”.

International rice prices increased by 1.1 percent, supported by strong demand for fragrant rice from buyers in the Asian Near East and currency appreciation of some exporters once morest the US dollar.

The FAO Meat Price Index has risen 1.1 percent since January. International bovine meat prices reached a new record amid strong global import demand, limited supply of ready-to-slaughter pigs in Brazil and sustained demand in Australia, with a view to rebuilding herds.

The FAO Sugar Price Index fell 1.9 percent as production prospects are favorable in major exporting countries, notably India and Thailand, and growing conditions have improved in Brazil.

Since the FAO Food Price Index measures one-month average prices, the February survey only partially takes into account the effects of the conflict in Ukraine on markets.

The index tracks monthly changes in the international prices of the most commonly traded food products in the world.