Global food prices falling but meat prices continue to rise
The latest food price index from the UN FAO, covering August, fell for the fifth consecutive month, to its lowest point since September 2010. However, as has been the case recently, meat prices continued to rise in August.
The latest food price index from the UN Food & Agriculture Organisation (FAO), covering August, fell for the fifth consecutive month, to 196.6 points. This marked its lowest point since September 2010. The average monthly food price index was almost 4% down from both the previous month and a year earlier. The drop in the food price index was mainly a result of falling dairy prices in the latest month, along with lower sugar, cereals and vegetable oil prices.
However, as has been the case recently, meat prices continued to rise in August, with the FAO meat price index up to 207.3 points. This was 1% higher than the previous month but 14% above last year’s level for the same month. Within the meat category, pork and sheep meat monthly averages fell back slightly, while poultry quotations were almost unchanged. However, higher overall meat prices were largely driven by a surge in Australian beef prices. Lower availability due to herd rebuilding following the recent drought, combined with increased import requirements from Asia, added support and this translated into higher beef prices on an international level.