Monday, 07 March 2022 12:55

FAO Food Price Index rises to record high in February

Written by  Staff Reporters
Increases in the FAO Food Price Index were lead by rises in vegetable oil and dairy prices. Increases in the FAO Food Price Index were lead by rises in vegetable oil and dairy prices.

The benchmark gauge for world food prices went up in February, reaching an all-time high, says the Food and Agriculture Organization of the United Nations (FAO).

The rise was led by vegetable oils and dairy products.

The FAO Vegetable Oils Price Index led the increase, rising 8.5% from January to reach a new record high, mostly driven by increased quotations for palm, soy and sunflower oils.

The sharp increase was primarily driven by sustained global import demand, which coincided with reduced export availabilities of palm oil from Indonesia, lower soybean production prospects in South America, and concerns about lower sunflower oil exports due to disruptions in the Black Sea region.

The FAO Dairy Price Index averaged 6.4% higher in February than in January. This was underpinned by lower-than-expected milk supplies in Western Europe and Oceania, as well as persistent import demand, especially from North Asia and the Middle East.

The FAO Meat price index rose 1.1% from January, with beef quotations reaching a new record high amid strong global import demand and tight supplies of slaughter-ready cattle in Brazil as well as high demand for herd rebuilding in Australia.

While pig meat prices edged up, those of lamb and poultry meat declined, in part due to high exportable supplies in Oceania and reduced imports by China following the end of the Spring Festival.

“Concerns over crop conditions and adequate export availabilities explain only a part of the current global food price increases. A much bigger push for food price inflation comes from outside food production, particularly the energy, fertilizer and feed sectors,” says FAO economist Upali Galketi Aratchilage.

“All these factors tend to squeeze profit margins of food producers, discouraging them from investing and expanding production.”

The FAO Food Price Index measures average prices over the month, so the February reading only partly incorporates market effects stemming from the conflict in Ukraine.

More like this

Food Price Index holds steady

The benchmark for world food commodity prices were broadly stable in November, with lower international cereal quotations offset by higher prices in vegetable oils.

FAO Food Price Index declines in August

International food commodity prices declined in August, led by staples other than rice and sugar, the Food and Agriculture Organization of the United Nations (FAO) says.

Food Price Index rebounds

Global food commodity prices rose in July, influenced by the termination of the Black Sea Grain Initiative and new trade restrictions on rice, says the Food and Agriculture Organization of the United Nations (FAO).

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

A different shade of blue for Norwood

Norwood and ARGO Tractors, the Italian manufacturer of Landini and McCormick tractors, have announced an agreement that gives Norwood exclusive…

» Latest Print Issues Online

The Hound

Why?

OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents…

Fat to cut

OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter