United Nations: In March, the Food and Agriculture Organization of the United Nations (FAO) announced that food prices rose for the first time in seven months due to higher costs of vegetable oil and dairy products.
Prices fell year-on-year during the month, according to the UN agency.
The February reading was the lowest for the index since February 2021 and the seventh straight decline.
International food prices hit record lows in March 2022 as Russia hit Ukrainian crop exporters.
The FAO price index, which tracks monthly changes in international prices of a basket of goods, averaged 118.3 points last month, down 7.7 percent from a year earlier.
However, it was up 1.1 percent from February and was the first increase since August.
The main monthly index, mainly related to vegetable oil, saw prices rise 8 percent from February to 130.6 points, according to the FAO. However, that is down about 1 percent from a year ago.
“International palm oil prices rose due to low seasonal yields in producer countries and domestic demand in Southeast Asia, while soybean oil recovered from multi-year lows due to strong demand from the biofuel industry, particularly in Brazil,” said the US.
The price of vegetable oil is also linked to the increase in the price of crude oil.
Meanwhile, milk prices fell 8.2 percent year-on-year to 124.2 points, but rose for the sixth month due to high cheese and butter prices.
The growth reflects steady import demand from Asia, spring break in Western Europe and domestic sales driven by lower seasonal output in Oceania, the report said.
“International oil prices rose further in March, despite soft demand from Asia, mainly due to seasonal demand and European stocks slightly tightening,” he said.
Meat prices rose 1.7 percent to 113 points in March, the second straight increase, but down 1.5 percent from the previous year.
According to FAO, international poultry prices have risen, “underpinned by persistent import demand from leading importing countries, despite ample supplies due to reduced bird flu outbreaks in major importing countries.”
The persistent nature of the bird flu virus means that it can be carried on agricultural equipment and easily spread from farm to farm, according to the World Organization for Animal Health.
The price of cattle related to cattle rose steadily in March, mainly due to higher purchases by importing countries, while the price of eggs related to sheep fell for the second month as the supply increased. Seasonal levels, especially from Australia, FAO said.
Wheat prices fell 2.6 percent for the third drop since February and the biggest annual drop of 20 percent, due to ongoing export competition between the United Kingdom, the Russian Federation and the United States.
“In large quantities, Chinese wheat purchases [from Australia and the United States] have weighed on the market, while favorable prospects for the 2024 crop in the Russian Federation and the United States have contributed to softer prices,” FAO said. he said.
On the contrary, corn rose every month as a higher percentage of purchases supported the price of the crop due to logistical constraints, especially from China, Ukraine and elsewhere.
Gazans reported a sharp rise in food prices, and sugar rose 4.8 percent to 133.1 percent in March, but fell by about 5.5 percent after two months of climbing.
Last month’s decline was based on India’s 2023-2024 sugar production forecast and an improved harvest in Thailand.
Large exports from Brazil also weigh on global sugar prices. Brazil’s crops, adversely affected by prolonged dry weather, “reinforced seasonal trends and limited price declines,” according to FAO. Brazil, Thailand and India are the world’s largest sugar producers.
In addition, low international crude oil prices helped lower sugar prices. APPLICATIONS
