The United Nations’ world food price index fell in December compared to November, primarily driven by a decline in international sugar prices, according to data released on Friday.
The index, compiled by the U.N. Food and Agriculture Organization (FAO) to track the prices of key globally traded food commodities, dropped to 127.0 points in December.
According to the release, the FAO Food Price Index (FFPI) stood at 127.0 points in December 2024, down 0.6 points (0.5 percent) from its November level, as decreases in the price indices for sugar, dairy products, vegetable oils and cereals more than offset increases in meat. The index stood 8.0 points (6.7 percent) above its corresponding level one year ago, yet remained 33.2 points (20.7 percent) below the peak reached in March 2022. For 2024 as a whole, the index recorded 122.0 points, 2.6 points (2.1 percent) lower than the average value in 2023.
As per report, the FAO Sugar Price Index averaged 120.0 points in December, down 6.4 points (5.1 percent) from November, marking a second consecutive monthly decline and standing 14.2 points (10.6 percent) below its value in December 2023. The decrease in world sugar prices was driven by larger- than- expected sugar production in Brazil in the second half of November and the weakening of the Brazilian real against the United States dollar. In addition, improving prospects for the sugarcane crops to be harvested from April 2025 in Brazil and the ongoing crushing season in India and Thailand, where mills are fully operational, also contributed to the decline in world sugar prices. For 2024 as a whole, the FAO Sugar Price Index averaged 125.8 points, down 19.2 points (13.2 percent) from 2023 mainly reflecting record-high exports from Brazil during the year and a positive global supply outlook for the 2024/25 season.
FAO said, the FAO Cereal Price Index averaged 111.3 points in December, relatively unchanged from November and 11.5 points (9.3 percent) below its year-earlier level. The FAO Vegetable Oil Price Index averaged 163.3 points in December, down 0.9 points (0.5 percent) month-on-month but still 33.5 percent higher than its year-earlier level.
The FAO Meat Price Index averaged 119.0 points in December, up 0.5 points (0.4 percent) from November, marking a rebound after three months of consecutive declines, according to the report.
The FAO Dairy Price Index averaged 138.9 points in December, down 1.0 point (0.7 percent) from November, marking the first decline after seven consecutive months of increases, but remained 20.2 points (17.0 percent) above its corresponding level a year earlier.
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