FAO: Food on the international market fell for the third month in a row

The Food and Agriculture Organization of the United Nations (FAO) food price index, which reflects the evolution of prices of five groups of cereals, meat, dairy products, vegetable fats, and sugar on the world market, fell by 1.2% in November, the organization said on Friday.

The drop in average prices was recorded for the third consecutive month, with November hitting a new low for the year.

Sugar prices fell by 5.9%, remaining at their lowest level since December 2020, amid forecasts of solid supply in the current season.

The Dairy Price Index fell by 3.1%, reaching its lowest level since September 2024, with all major products falling in price during the month.

Fruit oil prices fell by 2.6%, with declines in palm, rapeseed and sunflower oils more than offsetting a small increase in soybean oil prices.

The meat price index declined the least by 0.8%, continuing to be affected by the fall in pork and poultry prices.

Meanwhile, grain prices rose by an average of 1.8%, following a fall in the previous six months, with wheat appreciating by 2.5% over the month, amidst concerns over increased Chinese interest in US grains, the destruction of part of the Russian crop by adverse weather, and the ongoing hostilities in the Black Sea.

The FAO Food Price Index reflects price developments in the international market, but these only partially affect prices in the shops and can take time to be felt, depending on fair competition between traders and the application of administrative price controls.