The Strategist

Global food prices hit three-year high

01/12/2021 - 04:05

Food prices rose for the seventh consecutive month to a three-year high by December 2020, the UN Food and Agriculture Organisation (FAO) said.

Prices of dairy products and vegetable oils rose the most, the organisation added.

"For 2020 as a whole, the average value of this (food price) index, which monitors monthly variations in the world prices of the most traded food commodities, reached its highest level in three years at 97.9 points, up 3.1% from 2019," the FAO said in a statement. 

Nevertheless, this is 25% below the historic high recorded in 2011, the report said.

"The FAO Vegetable Oil Price Index rose by 4.7% in December to its highest level since September 2012," FAO experts commented. They attribute this to reduced supply from leading palm oil-producing countries and a surge in export duties in Indonesia. 

The organization attributed the rise in world prices of soybean oil to long strikes in Argentina. FAO attributed the rise in prices of dairy products to high import demand in Europe.