Food Price Index continues to climb - FAO
11 October 2016
The Food and Agriculture Organisation of the United Nations (FAO) Food Price Index* averaged 170.9 points in September – an increase of 5 points, or 2.9%, from the previous month and 10% on the same time last year.
Except for a small decline in July, the Index has been climbing higher since the beginning of the year, and, in September, reached the highest level since March 2015. The rise during the year has been predominantly driven by surging sugar prices, along with higher prices for dairy, meat and oils. In September, however, the rise was mostly attributed to a lift in dairy and sugar quotations.
The FAO Meat Price Index averaged 163.5 points in September – up marginally on the August value. Since the beginning of the year, when it hit a five-year low, the Meat Index has increased 12.6%. Pig meat has registered the greatest growth so far this year, followed by ovine and poultry meat, with bovine meat prices recording a more modest rise.
FAO report that pig and poultry meat prices have been driven upwards by strong international demand, especially from Asia, while ovine meat prices have risen in the face of lower global supplies. A recovery in bovine meat production in the US has resulted in weaker import demand, which has limited price rises during the year.
*The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices, weighted with the average export shares of each of the groups for 2002-2004 (Food and Agriculture Organisation of the United Nations).
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