The Strategist

FAO: Global food prices hit ten-year high

11/08/2021 - 12:45

According to the UN Food and Agriculture Organization (FAO), international food commodity prices climbed to their highest level since July 2011. In September, the food price index increased by 3% to 133.2 points.

Sergei F
Sergei F
"The FAO Food Price Index, which analyzes monthly changes in international prices of main staple food commodities," according to the organization's website, "averaged 133.2 points in October, up 3% from September and marking the third consecutive month of growth."

Prices for dairy goods climbed by 2% (due to increasing worldwide demand for butter, skimmed and whole milk powder, and purchasers' desire to stockpile); meat prices decreased by 0.7 percent (pork fell due to lower purchases from China and beef fell due to a sharp fall in the price of meat from Brazil).

Sugar prices dropped by 1.8 percent (the decline was due to limited import demand on world markets and a projected increase in export volumes from India and Thailand, as well as the weakening of the Brazilian real against the US dollar).

In 2021, global grain output is likely to hit new highs. The FAO predicts that their supplies will decline in the crop year 2021/22.