Bumper 2016 grain harvests were a leading factor in the decline of the global Food Price Index for the fifth year in a row, said the Food and Agriculture Organization. The UN agency was less sanguine about the outlook for this year.
“Economic uncertainties, including movements in exchange rates, are likely to influence food markets even more so this year,” said FAO senior economist Abdolreza Abbassian. The index tracks five key food groups. Cereal grain prices steadily declined through 2016, dropping by nearly 10 percent for the year. Sugar prices rose by 34 percent and vegetable oils by 11 percent for the year.
Although the dairy index was down by 4 percent for the year, “international dairy prices staged a substantial recovery from mid-year onwards,” said FAO. Meat prices were down by 7 percent for 2016, “with the largest falls recorded for bovine and poultry meats.”
The index peaked at 229.9 points in 2011 and fell to 161.6 points in 2016.