The Strategist

FAO: Global food prices hit six-years high, keep going up

05/10/2021 - 03:24

Global food prices continue to rise, reaching a six-year high in April, according to the UN Food and Agriculture Organisation (FAO).

Global food prices hit a six-year high in April as the FAO reported the average food price index was 120.9 points, up 30.8% from April 2020 and 1.7% from March 2021.

The index has risen to its highest level since May 2014 but has not yet hit an all-time high: in nominal terms, it is 12% below the record level recorded in February 2011.

Global food prices have been rising for the eleventh consecutive month, mainly due to higher prices for sugar, vegetable oil, meat, dairy products and cereals, according to the FAO. 

Prices of sugar increased the most, by 3.9% during the month and by almost 60% during the year, due to strong demand amid possible shortfall in global supply in 2020/21 because of a slow harvest in Brazil, the world's biggest sugar exporter, as well as because of frost damage in France. 

The FAO notes that price rises have been mitigated somewhat by projections of large export supplies from India and a marginal drop in oil prices.

Other foodstuffs also increased in price, but not as much as sugar - on average, oil, meat and dairy prices increased between 1.2% and 1.8%, while cereal prices rose slightly after declining in March.