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GAME INDUSTRY TRENDS ANALYSIS 2024
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World Food Prices Hit 18-month High
World food prices hit 18-month high
By Elizabeth Schroeder | 18 November 2024 | 9:00 am
Bolstered primarily by vegetable oil prices, global food prices rose sharply in October to reach an 18-month high. This is according to data recently released by the UN’s Food and Agriculture Organization (FAO).
Food prices reached their highest level since April 2023, with the FAO Food Price Index averaging 127,4 points, or 2% higher than its revised September level, Reuters reported.
According to the data, the prices of all commodities ranked on the index rose, except meat prices.
The FAO Vegetable Oil Price Index averaged 152,7 points in October, which was a 10,4 points increase, or 7,3%, on September, and was at the highest level in two years.
The FAO reported that the increase was the result of “higher quotations across palm, soya, sunflower, and canola oils”.
At the same time, the FAO Cereal Price Index rose 0,8% month-on-month to average 114,4 points in October.
Global wheat prices rose for the second consecutive month. This was mainly attributed to concerns about unfavourable weather conditions affecting the sowing of winter crops in several major Northern Hemisphere exporters, including the EU, Russia, and the US, according to Reuters.
In addition, price increases were attributed to the reinstatement of an unofficial price floor in Russia, along with escalating tensions in the Black Sea region.
Rising 1,9% from September, the FAO Dairy Price Index reached 139,1 points in October.
The FAO figures indicated that international cheese prices saw the “largest rise due to limited supply availability for spot imports, driven by strong domestic demand, especially in the EU, where milk production decreased seasonally”.
Due to strong demand, low stocks, and reduced milk production in Western Europe, global butter prices rose for the 13th consecutive month in October.
However, the prices of milk powders, especially skim milk powder, fell due to an increase in seasonal milk production in the Oceania region, as well as “weak global import demand”.
Concerns about the production outlook for Brazil in the 2024/25 season resulted in a 2,6% increase in the FAO Sugar Price Index in October, reaching an average of 129,6 points. This was the second monthly increase, following extended dry weather conditions in that country.
A further contributor to the price rise was higher international crude oil prices that stimulated the use of sugar cane for ethanol production in Brazil.
“The FAO Meat Price Index was down 0,3% and averaged 120,4 points in October, with international pig meat prices ping sharply due to increased slaughter in Western Europe and weak demand,” Reuters said.
“Poultry prices dipped with higher exports, while beef prices held steady as strong demand balanced Oceania’s new season supplies,” the report added.
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