Despite steady monthly increases for most of the year, global average prices in 2024 remained below their 2023 level. FAO: Food prices ease in December amid annual average increases Economic developments
The FAO Food Price Index was 0.5 percent below its November value in December 2024, as lower prices for sugar, dairy, vegetable oils and cereals offset higher meat prices.
The index value was 6.7 percent higher than the corresponding figure for the previous year, but still 20.7 percent below its peak level recorded in March 2022.
Despite a stable monthly increase for most of the year, driven primarily by rising prices for dairy products, meat and vegetable oils, average global prices in 2024 remained below the corresponding figure for 2023.
Cereals
In December, the average value of the Cereal Price Index was virtually unchanged from November, being 9.3 percent below the level of December of the previous year. Wheat export prices were generally unchanged in December. Downward pressure on prices from weaker global demand and increased supplies due to strong seasonal crop shipments from Argentina and Australia was offset by higher prices due to unfavourable winter crop prospects in the Russian Federation.
World corn prices increased slightly due to stronger export sales and tighter supplies in the United States, as well as strong demand for Ukrainian produce.
Vegetable Oils
The average price of vegetable oils fell by 0.5 percent in December, but was still 33.5 percent higher than the December 2023 level. The slight decline was primarily due to lower prices for soybean, rapeseed and sunflower oils amid a moderate increase in palm oil prices.
At the end of 2024, amid a reduction in supply at the global level, the value of the Vegetable Oil Price Index was 9.4% higher than the 2023 figure.
Meat
The Meat Price Index was 0.5 points higher than its November value, thus increasing after three months of steady decline. At this level, the index value was 7.1 percent higher than the same period last year. This increase was primarily due to higher beef prices, driven by strong global demand, as well as production disruptions due to planned preventive measures carried out at the end of the year in major exporting countries.
At the end of the year, average global meat prices were 2.7 percent higher than the 2023 level, mainly due to strong import demand from major importing countries amid slower production growth.
Dairy Products
The average value of the Dairy Price Index in December fell by 0.7 percent compared to November, thus recording the first decline in this index after seven consecutive months of growth. The value was nevertheless 17.0 percent higher than in the same period of the previous year. Against the backdrop of weak demand in world markets and the accumulation of reserves, global quotations for butter fell the most, reversing a fourteen-month growth streak.
At the end of 2024, the average price of dairy products was 4.7 percent higher than the 2023 level. This increase is primarily due to a jump in butter prices, driven by increased global demand and reduced export supplies due to unpredictable weather conditions that negatively affected production.
Sugar
The Sugar Price Index fell by 5.1 percent in December compared to November. This is the second month in a row that this indicator has been declining, resulting in a 10.6 percent lower reading than in the same period last year.
According to the results of 2024, average sugar prices were 13.2 percent lower than in 2023: this trend was primarily driven by record export figures from Brazil and a favorable global supply outlook.