International food prices hit 5 year low says FAO

Global food prices decline to their lowest levels since 2010 as dairy pushes commodities down, according to the United Nations food agency

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

UN Food and Agriculture Organisation’s (FAO) reported that the price index, which measures the performance of international prices of a basket of food commodities, reached a median of 171 points in April, below March’s expectation of 1.2 percent on Thursday.

Food prices have been declining since April 2014 and are likely to stay under downward pressure due to the robust U.S dollar, low crude prices and soaring international production. 

According to experts, the exchange rate is expected to have the biggest impact on price developments in the near future. 

Amongst a basket of edible goods, meat prices rose for the first time since August 2014. In addition, international beef production is forecast to grow slightly by 0.2 percent while meat output expands by 1.3 percent.   

FOA expects the overall output of global cereal production to decline in 2015 from 2014, reaching 2.509 billion tonnes, due to the deterioration of maize planting.

Cereal stocks on the other hand are forecast to reach 626.6 million tonnes during 2015 and 2016 while international wheat outputs are anticipated to hit 719.1 million tonnes. 

TRTWorld and agencies