Global food prices fall as sugar costs drop, FAO reports

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For 2024 as a whole, the index recorded 122.0 points, 2.1% lower than the average value in 2023, offsetting significant decreases in quotations for cereals and sugar with smaller but insignificant increases in prices for vegetable oils, dairy, and meats.

The cereal price Index in December was relatively unchanged from November and 9.3% below its year-earlier level, as a marginal uptick in maize quotations offset a drop in those for wheat.

For 2024 as a whole, the cereal price index averaged 113.5 points, down 13.3% from the 2023 level, marking a second annual decline from the 2022 record level. The all rice price index rose by 0.8% from its average 2023 level, representing a 16-year high in nominal terms.

The vegetable oil price index in December declined by 0.5% from November though still 33.5% higher than its year-earlier level. For 2024 as a whole, the index averaged 9.4% higher than in 2023 amid tightening global supplies.

The meat price index, in contrast to other subindices, rose by 0.4% in December from November, ending a three-month declining trend, and stood 7.1% above its December 2023 value. In 2024 as a whole, the index was 2.7% above its 2023 average, with higher quotations for bovine, ovine, and poultry meats offsetting declining international prices for pig meat.

The dairy price index declined after seven consecutive months of increases, dipping by 0.7 % from November although still 17.0% above its December 2023 value. For 2024 as a whole, the index averaged 4.7% higher than in 2023, due mainly to surging butter prices.

The sugar price index led the monthly decline, dipping by 5.1% from November amid improving sugarcane crop prospects in the main producing countries to stand 10.6% below its December 2023 level. For 2024 as a whole, the index averaged 13.2% lower than for 2023.