Advertise with fastmoving.co.za
 
 

FAO Food Price Index Drops To Four-Year Low - Ghana
FAO Food Price Index Drops To Four-Year Low - Ghana

FAO Food Price Index Drops To Four-Year Low - Ghana

FMCG SUPPLIER NEWS

TheChronicle.com.gh - Sep 18th 2014, 13:42

FAO’s monthly food price index registered another drop in August, continuing a five-month downward run and reaching its lowest level since September 2010. 

The index’s August average of 196.6 points represents a decrease of 7.3 points (3.6 percent) from July. With the exception of meat, prices for all of the commodities measured by the index dipped markedly.

Dairy led the pack, with FAO’s sub-index for dairy products averaging 200.8 points in August, down 25.3 points (11.2 percent) versus July and 46.8 points (18.9 percent) compared to a year ago — the result of abundant supplies for export coupled with reduced import demand.

Russia’s prohibition at the beginning of the month on imports of dairy products from several countries helped depress prices, while slackening imports of whole milk powder by China (the world’s largest importer) also contributed to market uncertainty.

FAO’s price index for cereals averaged 182.5 points in August, down 2.8 points (1.5 percent) from last month and 24.2 points (11.7 percent) versus August 2013.

With 2014 being another record year for wheat production, prices for the staple grain continued to slide in August, reaching their lowest value since July 2010. Similarly, near-ideal growing conditions in key producing areas, coupled with abundant stocks, have seen maize prices retreat to a 4-year low.

However, rice bucked the trend in grains, with its prices rising in August, reflecting increased import demand, lower-than-expected releases from stockpiles by Thailand, and unfavorable weather affecting some crops in Asia.

“Rice supplies appear to be ample world-wide, but stocks are very much concentrated in a small number of countries, and often owned by governments.

“This means that these countries can very much influence world prices, by deciding whether to let those supplies flow to the market or not,” said FAO economist Concepción Calpe.

“The fact that Thailand is still limiting sales of the huge rice volume held in public warehouses has been one of the principal factors underpinning world prices in recent months.”

FAO’s Food Price Index is a trade-weighted index that measures prices of five major food commodities on international markets: in addition to sub-indices for prices of cereals, it also tracks meat, dairy products, vegetable oils, and sugar.

The vegetable oils sub-index clocked in at 166.6 points in August, 14.5 points (8 percent) less than the previous month and the lowest level since November 2009.

FAO’s index of sugar prices averaged 244.3 points in last month, down by 14.8 points (5.7 percent) from July, but still 2.2 points (1 percent) higher than one year ago.

Moreover, its meat sub-index averaged 207.3 points in August, 2.5 points (1.2 percent) more than in July but 25 points (14 percent) above last year.From TheChronicle.com.gh 

Read more about: russia | meat | ghana | fao | dairy

Related News

SA dairy exports doing well
16/04/2019 - 15:42
Dairy imports for February were 4 110 tons at a cost of R172 million. South Africa imported mainly from France (28%) New Zealand (28%), Germany (13%), Poland (8%) and Ireland (4%). Dairy imports for this year are low compared to last year, largely due to limited UHT imports. The main dairy products imported in February were whey (34%), milk powder (22%) and cheese (18%). UHT as a percentage of total imports was less than 1%.

SA meat price inflation to remain subdued due to foot-and-mouth outbreak
19/03/2019 - 11:27
SA’s meat price inflation could remain subdued in 2019 as a ban in exports could increase local supplies, according to the Agriculture Business Chamber (Agbiz), an organisation that represents commercial farmers and agribusiness.

Brimstone to review Clover acquisition after boycott threats
08/02/2019 - 09:35
JSE-listed Brimstone said that it is reviewing its participation in a consortium seeking to acquire dairy producer Clover, due to protests over the participation of an Israeli company.

Food prices dip in October
05/11/2018 - 13:37
International food commodity prices dipped in October, as falling dairy, meat and vegetable oils prices more than offset a surge in sugar prices, according to the United Nations.

Russia's love affair with chocolate lifts global demand for cocoa
05/10/2018 - 15:43
Swiss chocolate maker Barry Callebaut says Russia has long been the number two chocolate market after the US, and demand started to pick up in 2017 after the rouble stabilised.