According to the Food and Agriculture Organization (FAO) of the United Nations, Global food commodity prices saw a dip in December, primarily driven by a drop in international sugar prices. The FAO Food Price Index, which monitors monthly changes in the prices of globally traded food commodities, stood at 127.0 points in December, a 0.5% decline from November but a 6.7% increase compared to December 2023.
For 2024 as a whole, the index averaged 122.0 points, marking a 2.1% decrease from 2023 levels. This decline reflects significant drops in cereal and sugar prices, offset partially by increases in vegetable oil, dairy, and meat prices.
Cereal prices remained stable in December but were 9.3% lower than a year earlier. The FAO Cereal Price Index for 2024 averaged 113.5 points, a 13.3% drop from 2023, representing a second consecutive annual decline from the record-high levels of 2022. However, rice prices reached a 16-year nominal high, rising by 0.8% compared to their 2023 average.
Vegetable oil prices fell slightly by 0.5% in December but ended the year 33.5% higher than December 2023. For the year, the Vegetable Oil Price Index rose 9.4% compared to 2023, driven by tightening global supplies.
In December, meat prices increased by 0.4%, reversing three months of decline. For 2024, the Meat Price Index was 2.7% higher than in 2023, with higher prices for bovine, ovine, and poultry meats compensating for a drop in pig meat prices.
Dairy prices dipped by 0.7% in December following seven consecutive months of growth. Nonetheless, the Dairy Price Index for 2024 was 4.7% higher than in 2023, fuelled by a surge in butter prices.
Sugar prices experienced the most significant drop in December, falling by 5.1% due to improved sugarcane crop prospects in key producing nations. The FAO Sugar Price Index for 2024 averaged 13.2% lower than in 2023, marking a sharp decline compared to the previous year.
In 2024, global food prices showed a mixed trend, with overall declines in cereals and sugar offset by increases in vegetable oils, dairy, and meat. December's dip in the FAO Food Price Index highlights the ongoing fluctuations in the global market, driven by supply conditions and demand shifts across key commodities.
