Global food prices are the highest they’ve been since June 2014, according to a monthly index compiled by the UN Food and Agriculture Organization. The Food Price Index rose by 2.1 percent, its 10th increase in a row, said the FAO on Thursday.
“Strong gains” by meat, dairy products, and vegetable oils drove the latest increase. The price index began its climb last June, when the pandemic slowed the global economy and disrupted shipping channels for food and other goods. The Food Price Index is based on international prices for a basket of foods: cereal grains, meats, sugar, vegetable oils, and dairy.
Vegetable oil prices soared 8 percent in the past month, to reach their highest level since June 2011. “Soyoil prices rose sharply, largely underpinned by prospects of firm demand, especially from the biodiesel sector,” said the FAO. Lingering concerns over supplies combined with rising demand to lift palm oil prices for the 10th straight month. Dairy prices rose 3.9 percent, partly due to tight butter supplies in Europe, and meat prices rose 2.3 percent, led by large imports of pork and poultry by China and other Asian countries.
World grain production will increase for the third year in a row, said the FAO in a companion report. Wheat production would be a record 785 million tonnes, up 1.2 percent from 2020, due to large crops in Europe, the No. 1 grower, and a record harvest in No. 3 India. High yields in South America and South Africa will boost the global corn crop. Overall, world grain production was pegged at 2.765 billion tonnes, a 2 percent rise from 2020.