Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Global food prices declined from record highs in 2022, the UN says. Except for these two staples

The U.N. Food and Agriculture Organization says global prices for food commodities like grain and vegetable oil fell last year from record highs in 2022

Via AP news wire
Friday 05 January 2024 09:11 EST

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Global prices for food commodities like grain and vegetable oil fell last year from record highs in 2022, when Russia’s war in Ukraine, drought and other factors helped worsen hunger worldwide, the U.N. Food and Agriculture Organization said Friday.

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, was 13.7% lower last year than the 2022 average, but its measures of sugar and rice prices growing in that time.

Last month, the index dropped some 10% compared with December 2022. The drop in food commodity prices in 2023 comes despite a difficult year for food security around the world.

Climate effects like dry weather, flooding and the naturally occurring El Nino phenomenon, combined with fallout from conflicts like the war in Ukraine, bans on food trade that have added to food inflation and weaker currencies have hurt developing nations especially.

While food commodities like grain have fallen from painful surges in 2022, the relief often hasn’t made it to the real world of shopkeepers, street vendors and families trying to make ends meet.

More than 333 million people faced acute levels of food insecurity in 2023, according to another U.N. agency, the World Food Program.

Rice and sugar in particular were problematic last year because of climate effects in growing regions of Asia, and prices have risen in response, especially in African nations.

With the exception of rice, the FAO's grain index last year was 15.4% below the 2022 average, ”reflecting well supplied global markets.” That's despite Russia pulling out of a wartime deal that allowed grain to flow from Ukraine to countries in Africa, the Middle East and Asia.

Countries buying wheat have found supply elsewhere, notably from Russia, with prices lower than they were before the war began, analysts say.

The FAO's rice index was up 21% last year because of India's export restrictions on some types of rice and concerns about the impact of El Niño on rice production. That has meant higher prices for low-income families, including places like Senegal and Kenya.

Similarly, the agency's sugar index last year hit its highest level since 2011, expanding 26.7% from 2022 because of concerns about low supplies. That followed unusually dry weather damaging harvests in India and Thailand, the world’s second- and third-largest exporters.

The sugar index improved in the last month of 2023, however, hitting a nine-month low because of strong supply from Brazil, the biggest sugar exporter, and India lowering its use for ethanol production.

Meanwhile, meat, dairy and vegetable oil prices dropped from 2022, with vegetable oil — a major export from the Black Sea region that saw big spikes after Russia invaded Ukraine — hitting a three-year low as global supplies improved, FAO said.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in