PBA ReporterThe Food and Agriculture Organisation (FAO) of the United Nations’ report claimed that global food prices surged by 13 per cent in March, making a giant leap to the highest level ever.
This was contained in the monthly Food Price Index released on Friday, noting that the food prices averaged 159.3 points in March, up 12.6 per cent from February, when it had already reached its highest level since its inception in 1990.
Join our WhatsApp ChannelPrime Business Africa can report that the index tracks monthly changes in the international prices of a basket of commonly-traded food commodities.
The FAO noted that latest level of the index was 33.6 per cent higher than in March 2021.
The latest increase reflects new all-time highs for vegetable oils, cereals, and meat sub-indices, while those of sugar and dairy products also rose significantly.
The report added that they were driven by large rises in wheat and all coarse grain prices largely as a result of the war in Ukraine.
According to it, “The Russian Federation and Ukraine, combined, accounted for around 30 per cent and 20 per cent of global wheat and maize exports, respectively, over the past three years.
“Contrasting trends across the various origins and qualities kept the March value of FAO’s Rice Price Index little changed from February, and thus still 10 per cent below its level of a year earlier.”
FAO said the expected loss of exports from the Black Sea region exacerbated the already tight global availability of wheat.
According to the report, vegetable oil prices rose by 23.2 per cent, driven by higher quotations for sunflower seed oil, of which Ukraine is the world’s leading exporter. Palm, soy, and rapeseed oil prices also rose markedly as a result of the higher sunflower seed oil prices and the rising crude oil prices, with soy oil prices further underpinned by concerns over reduced exports by South America.
It further noted that higher crude oil prices were a driving factor, along with currency appreciation of the Brazilian Real, while favourable production prospects in India prevented larger monthly price increases.
The report further read: “The meat price index increased by 4.8 per cent in March to reach an all-time high, led by surging pig meat prices related to a shortfall of slaughter pigs in Western Europe.
“International poultry prices also firmed in step with reduced supplies from leading exporting countries following avian flu outbreaks.”
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