The benchmark for world food commodity prices declined in December compared to the previous month, led down by a drop in international sugar quotations, the Food and Agriculture Organization of the United Nations (FAO) has reported today, Friday January 3.
The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 127.0 points in December, down 0.5% from November and up 6.7% December 2023.
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 not insignificant increases in prices for vegetable oils, dairy, and meats.
FAO Food Price Index
The FAO 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 FAO 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 FAO All Rice Price Index rose by 0.8% from its average 2023 level, representing a 16-year high in nominal terms.
The FAO 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 FAO Vegetable Oil Price Index averaged 9.4% higher than in 2023 amid tightening global supplies.
Meat and dairy
The FAO Meat Price Index, in contrast to other sub-indices, 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 FAO Meat Price 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 FAO Dairy Price Index declined after seven consecutive months of increases, dipping by 0.7% from November although still 17% above its December 2023 value.
For 2024 as a whole, the FAO Dairy Price Index averaged 4.7% higher than in 2023, due mainly to surging butter prices.
The FAO 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 FAO Sugar Price Index averaged 13.2% lower than for 2023.
