FAO: Global food price index fell in January to a 3-year low

The United Nations Food and Agriculture Organization (FAO) global food price index fell in January to its lowest levels in nearly three years, driven by declines in the prices of some types of grains and meat prices.

The organization said on Friday that its price index, which measures changes in the prices of the most widely traded primary food commodities globally, recorded an average of 118 points in January, down from 119.1 the previous month.

The organization added in its monthly report, “Global wheat export prices declined in January due to strong competition between exporters and the arrival of recently harvested supplies to countries in the Southern Hemisphere.”

She noted that corn prices also decreased significantly, a reflection of improved crop conditions, the start of harvest in Argentina, and increased supplies in the United States.

She added that the meat price index decreased for the seventh month in a row, as the abundance of supplies from major exporting countries contributed to a decline in global prices for poultry, cattle and pig meat.

In a separate report, the FAO said that global cereal production in 2023 appears to have reached an all-time high of 2.836 billion tons, an increase of 1.2% from 2022.

Global production of coarse grains, or grains other than wheat and rice, hit an all-time high of 1.523 billion tons, revised up by 12 million tons this month.

The organization said, “The bulk of the adjustment is due to new official data from Canada, China (mainland), Turkey, and the United States, where corn production estimates rose, supported by a larger-than-expected increase in crop sizes and harvested areas.”