The benchmark index for global food prices increased for the first time in a year in April, according to the Food and Agricultural Organisation of the United Nations (FAO) has reported.

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 127.2 points in April 2023, up 0.6% from March.

This was driven by increased quotations for meat, sugar and rice, while prices for wheat, maize, dairy products and vegetable oils declined.

The index is 19.7% below its level in April 2022, but still remains 5.2% higher than in April 2021.

FAO

The FAO Meat Price Index rose 1.3% last month, led by higher pig meat quotations, followed by poultry prices, due to increased demand from Asia and the impact of avian influenza (bird flu) outbreaks on supply.

International beef prices rose due to a drop in cattle supplies, especially in the US.

The FAO Sugar Price Index rose 17.6% from March, reaching its highest level since October 2011, because of reduced production expectations in India, China, Thailand and the EU.

Due to “slack global import demand” for milk powders and higher cheese availability, the FAO Dairy Price Index dropped by 1.7%.

In April, international prices of milk powders fell for the tenth consecutive month.

Increased purchases by China and seasonally declining supplies from New Zealand prevented a potentially steeper fall in the world prices of whole milk powder.

The FAO Vegetable Oil Price Index declined by 1.3% in the month, registering its fifth consecutive monthly decline.

Prices

The FAO Cereal Price Index dipped 1.7% from March and averaged 19.8% below its April 2022 value.

International wheat prices declined by 2.3%, due mostly to large exportable availabilities in Australia and Russia.

World maize prices fell 3.2% as supplies in South America increased with ongoing harvests.

The challenge which lies ahead for grain pices

The FAO has also adjusted its world wheat production forecast for 2023. The global outturn is now set at 785 million tonnes, the second largest on record.

Commenting on the report, Maximo Torero, FAO chief economist, said: “It is important that we continue to track very closely the evolution of prices and the reasons for increases in prices.

“As economies recover from significant slowdowns, demand will increase, exerting upward pressure on food prices.

“At the same time, the increase in rice prices is extremely worrisome and it is essential that the Black Sea initiative is renewed to avoid any other spikes in wheat and maize,” he added.

Food

Meanwhile, the number of people battling acute hunger and suffering from malnutrition is the highest in the last seven years, according to a new report.

The Global Report on Food Crises 2023 found that last year around 258 million people across 58 countries faced high levels of acute food insecurity.

The Covid-19 pandemic, the Russian invasion of Ukraine, extreme weather conditions and armed conflicts in some countries are driving millions of people into acute food insecurity and malnutrition.

The report outlined that The Democratic Republic of the Congo, Ethiopia, Nigeria, Afghanistan, Yemen, Myanmar, the Syrian Arab Republic, Sudan, Ukraine and Pakistan are the world’s 10 hungriest countries.