After some dramatic price increases in recent years, global food prices are falling significantly again. Meat is also becoming cheaper. There is a different trend here.
Global food prices fell by the most in almost three years in January. The barometer from the UN Food and Agriculture Organization (FAO) was at 118.0 points, after 119.1 points in December. This is the lowest level since February 2021. The FAO Food Index records the most traded foods globally on a monthly basis.
The reason is the strong competition among exporters and the arrival of recently harvested supplies in the countries of the southern hemisphere. In addition, corn prices have fallen sharply, which is due to improved harvest conditions and the start of the harvest in Argentina as well as larger stocks in the USA, the experts said.
grain production probably at a record high
Meanwhile, the price barometer for meat has fallen for the seventh month in a row, the FAO said. Abundant deliveries from leading export countries depressed international prices for poultry, beef and pork.
A separate FAO report said global grain production for 2023 was on track to reach a record high of 2.836 billion tonnes. That would be an increase of 1.2 percent compared to the previous year.
Opposite Trend in Germany
In Germany, however, food prices have recently continued to rise. According to the Federal Statistical Office, they were 4.9 percentage points higher in December 2023 than in the same month of the previous year. However, individual products have become cheaper again in this country, such as butter. Other products such as wheat rolls have continued to rise in price.