Food Price Index results so far for 2023

THE FAO FOOD Price Index (FFPI) averaged 126.9 points in March 2023, down 2.8 points (2.1%) from February, marking the twelfth consecutive monthly decline since reaching its peak one year ago. During the past 12 months since March 2022, the index has fallen by as much as 32.8 points (20.5%). The decline in the index in March was led by drops in the cereal, vegetable oil and dairy price indices, while those of sugar and meat increased.

The FAO Cereal Price Index averaged 138.6 points in March, down 8.2 points (5.6%) from February and 31.6 points (18.6%) below the previous March benchmark. April’s decrease reflects a fall in international prices of all major cereals. International wheat prices fell the most, by 7.1%, driven by ample global supplies and strong competition among exporters.

The FAO Vegetable Oil Price Index averaged 131.8 points in March, down 4.1 points (3.0%) from February and standing as much as 47.7% below its level a year ago. The decrease in the index was the net result of lower soy, rapeseed and sunflower oil quotations as opposed to offsetting higher world palm oil prices.

The FAO Dairy Price Index averaged

130.3 points in March, down 1.1 points (0.8%) from February and standing 15.6 points (10.7%) below its level in the corresponding month a year ago. The decline in March was driven by lower price quotations for cheese and milk powders, while butter prices increased.

The FAO Meat Price Index averaged 113.0 points in March, slightly up (0.9 points and 0.8%) from February, but down 6.3 points (5.3%) from one year ago. In March, price quotations for bovine meat increased, influenced by rising internal prices in the US, where cattle supply is expected to be lower in the months ahead. Pig meat prices increased slightly, mainly due to higher prices in Europe in conjunction with the continued supply limitations and increased preEaster demand. By contrast, poultry meat prices fell for the ninth successive month on subdued global import demand, despite supply challenges amid widespread avian influenza outbreaks in several large exporting countries.

The FAO Sugar Price Index averaged 127.0 points in March, up 1.8 points (1.5%) from February, marking the second consecutive monthly increase and reaching its highest level since October 2016. The increase in prices mostly resulted from concerns over lower global availabilities of sugar in the 2022/23 season, following declining production prospects in India, Thailand and China.

However, the positive outlook for the sugarcane crops in Brazil, which are about to be harvested, limited the upward pressure on world sugar prices.