FAO Reports Decline in Global Food Prices for December

FAO reported a decrease in its global food price index for December, primarily driven by a drop in international sugar prices. The index fell to 127.0 points, down 0.5% from November’s revised figure of 127.6. However, the December index was still 6.7% higher than the same period in 2023. For the full year of 2024, the FAO food price index averaged 122.0 points, marking a 2.1% decrease compared to 2023. The decline was largely attributed to significant drops in cereal and sugar prices, which were offset by smaller increases in vegetable oils, dairy products, and meats.

Sugar prices saw the largest monthly decline, falling 5.1% from November. This decrease was linked to improved crop prospects in major sugar-producing countries. As a result, sugar prices stood 10.6% below their level in December 2023. 

The FAO cereal price index remained largely unchanged from November, with a 9.3% year-on-year decline. A slight uptick in maize prices helped offset a drop in wheat prices. In 2024, the cereal price index averaged 113.5 points, a 13.3-point decrease from 2023. 

The FAO vegetable oil price index dropped 0.5% from November but remained 33.5% higher than the previous year. The index for vegetable oils in 2024 was 9.4% higher than in 2023, reflecting global supply shortages. 

Dairy prices, after seven consecutive months of increases, fell by 0.7% from November but still showed a 17.0% year-on-year gain. The dairy price index for 2024 was 4.7% higher than in 2023, mainly due to a surge in butter prices. 

Meat prices saw a slight increase of 0.4% from November, reversing three months of declines. The December meat price index stood 7.1% higher than in December 2023. For the full year, the meat price index was 2.7% higher than in 2023, with higher prices for beef, sheep, and poultry offsetting a drop in pork prices.