Global food prices decrease by 13.7% in 2023, according to FAO
Published on: January 10, 2024.
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World food prices experienced a significant decline in 2023, particularly for grains and oils, as supply concerns eased, according to the UN’s Food and Agriculture Organization (FAO). The FAO stated that overall, world food commodity prices dropped by 13.7% in 2023 compared to the previous year.
The FAO’s cereals price index fell by 15.4%, which was attributed to well-supplied global markets. While supply concerns eased for wheat and maize, the opposite was true for rice due to the impact of the El Nino weather phenomenon and India’s restrictions on exports. Consequently, rice prices increased by 21% last year.
The vegetable oil price index experienced the most significant decline, dropping by 32.7%. This was due to improved supplies and reduced use for biofuel production. In contrast, sugar prices rose by 26.7% overall, although they retreated from their highs in December because of increased exports from Brazil and reduced biofuel use.
It is worth noting that while the FAO’s overall index decreased, consumer food prices in many countries are rising, often at a faster rate than the overall inflation rate. Economist and food industry specialist Bruno Parmentier emphasized that a drop in food commodity prices does not necessarily correspond to a decrease in food prices for consumers. The FAO index measures commodity market prices, which may take time to impact supermarket shelves. Additionally, these prices only represent a fraction of the cost of processed final products.
In conclusion, the FAO’s report highlights the decline in global food prices, particularly for grains and oils. However, it is essential to consider that consumer food prices can still rise despite this decline. Factors such as labor costs, production costs, and other expenses play a more significant role in determining the final price of food products.
Source: [UrduPoint](https://www.urdupoint.com)
