Food prices rose in April to the highest level in two years, driven by a significant increase in the prices of meat, milk, and dairy products, reported the Food and Agriculture Organization (FAO) of the United Nations (UN).
The FAO food price index for a basket of basic food products averaged 128.3 points in April and was one percent higher than in March.
Its value is the highest since April 2023, according to data from FAO.
Meat saw the sharpest increase in April, rising by 3.2 percent compared to March, primarily reflecting a jump in pork prices.
Dairy products also rose significantly, by 2.4 percent, with the highest price of butter since FAO began publishing data, due to falling stocks in Europe.
Cereal prices also increased noticeably, by 1.2 percent compared to March. Wheat rose only slightly as reduced supply from Russia and stronger demand under the influence of a weaker dollar – primarily against the euro – was offset by increased uncertainty in trade and the economy in general.
Corn prices rose due to seasonally lower stocks in the United States (U.S.) and currency exchange movements.
Vegetable oils, on the other hand, fell by 2.3 percent compared to March due to increased production in Southeast Asian countries. Sunflower oil prices remained at the March level.
Compared to last April, vegetable oils are still 20.7 percent more expensive.
Sugar, meanwhile, fell in price by 3.5 percent in April compared to March under the influence of uncertain prospects for the global economy and the possible impact of potential negative trends on the demand for sugar in the food industry, its largest consumer.
In a separate report on supply and demand in the cereal market, FAO slightly lowered its estimate of global cereal production in 2024 to 4.848 billion tons, as the corn harvest was weaker than previous calculations had shown.
In 2025, wheat production is expected to remain at last year’s level and amount to around 795 million tons, as record production in Asia is expected to be offset by a weaker harvest in Western Europe and the Middle East due to scarce rainfall. The harvest may also be weaker in the U.S. due to drought, FAO notes.
