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Food: World Prices Falling

08/09/2023
2 minutes

In August, the United Nations reported declines in wholesale prices for several food categories, including dairy products, vegetable oils, meat, and grains.

Global wholesale food prices, which rose 1.3% month-on-month in July, fell again in August. According to analysts from the UN Food and Agriculture Organization (FAO), average global prices in August 2023 were 2.1% lower than in July and 24% lower than in March 2022, when prices spiked. The food price index, which constantly monitors changes in the cost of basic food products, was most affected by lowered prices for dairy products, vegetable oils, meat, and grains. On the other hand, an increase in sugar prices was recorded.
“The world food price index in August amounted to 121.4 points. Prices have stabilized,” FAO said in its monthly report entitled “Food Price Index declines in August.”
The price index for grain crops in August decreased by 0.7%. In particular, wheat prices fell 3.8%, and corn prices continued to decline in August for the seventh month in a row and reached their lowest level since September 2020. In contrast, following the halt in Indian exports in July this year, rice prices rose 9.8% over the month, reaching their highest level in 15 years.
Finally, wholesale prices on world vegetable oil markets in August decreased by 3.1%, dairy products by 4%, and meat by 3%. At the same time, sugar prices in August increased by 1.3% compared to the previous month and by 34.1% in annual terms. According to FAO, the sharp rise in prices was caused by growing concerns among traders about the impact of the El Niño weather phenomenon that could lead to a reduction in sugar production.