ROME (AP) — World prices for food commodities like grains and vegetable oils hit an all-time high last yr, even after falling for nine straight months, the Food and Agriculture Organization of the United Nations said as Russia’s war in Ukrainedrought and other aspects fueled inflation and deepened hunger around the globe.
The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, fell 1.9% in December in comparison with a month earlier, the Rome-based organization said on Friday. All year long, it averaged 143.7 points, greater than 14% above the 2021 average, which also saw strong increases.
The decline in December was driven by a fall in vegetable oil prices amid declining import demand, expectations of increased soybean oil production in South America and lower crude oil prices. Cereals and meat also fell, while dairy and sugar rose barely.
“Calmer food commodity prices are welcome after two very unstable yearssaid FAO chief economist Maximo Torero in a prepared statement. “It’s important to stay vigilant and focus firmly on mitigating global food insecurity, provided that global food prices remain elevated, with many staples near record highs, rice prices rising, and many food security risks still present. with future deliveries. “
Last yr, the United Nations Food Price Index hit its highest level because it began recording in 1961, in accordance with FAO data.
Russia’s invasion of Ukraine in February exacerbated the food crisis because each countries were the world’s leading wheat suppliersbarley, sunflower oil and other products, especially to nations in parts of Africa, the Middle East and Asia that were already facing famine.
Because of the disruption of critical supplies from the Black Sea, food prices hit record highsrising inflation, poverty and food insecurity developing countries that depend on imports.
The war also shook the energy markets and fertilizer deliveries, each essential to food production. It was on top climatic upheavals that led to famine in places just like the Horn of Africa. Ethiopia, Somalia and Kenya are severely affected by the so-called the worst drought in many yearswith a UN warning that parts of Somalia face famine. 1000’s of individuals have already died.
Wheat and corn prices hit record highs last yr, though they fell in December together with the fee of other grains, the FAO said. Harvesting in the Southern Hemisphere was found to have increased supplies, and there was strong competition amongst exporters.
The organization’s vegetable oil price index hit an all-time high last yr, despite falling to its lowest level since February 2021 in December. Throughout 2022, the FAO Dairy Price Index and the Meat Price Index were also at their highest since 1990.
With postal wires.