Economic

FAO: World food prices record first rise in 2020

Global food prices rose during last June, for the first time since the beginning of 2020, with signs of improvement in demand, after periods of deflation resulting from the closure of most of the world’s economies, due to the outbreak of the Corona epidemic. 

The Food and Agriculture Organization of the United Nations (FAO) said that there has been an improvement in the price indices for vegetable oils, sugar and dairy products; While the prices of grains and meat remained low.

The average food price index adopted by the Food and Agriculture Organization, and the international prices of the most heavily traded food commodities (sugar, meat, dairy, oils, grains) were 93.2 points in June, up 2.4 percent in May.

The FAO vegetable oil price index rose 11.3 percent in June, after falling for four consecutive months.

The recovery mainly reflects a sharp rise in palm oil prices, due to an improvement in global import demand, after the easing of COVID-19-related closures in a number of countries.

The sugar price index increased by 10.6 percent in June compared to the previous month. This is due to the high price of crude oil; The rise encouraged Brazilian sugar factories to use more sugar cane supplies to produce ethanol instead of sugar.

FAO: World food prices record first rise in 2020

Also, the dairy price index increased 4 percent, its first increase after four months of consecutive declines; Supporting renewed demand for immediate imports, especially from the Middle East and East Asia.

In contrast, the cereal price index fell 0.6 percent, due to new crops in the northern hemisphere and improved production in a number of major exporting countries.

The meat price index fell 0.6 percent, due to lower beef and poultry meat prices, and increased availability of exports in the main producing regions.

The report stated that global grain production is preparing to reach a new record of 2790 million tons in 2020, an increase of 9.3 million tons over the May forecast.

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