Investment & Economy

Global food prices rose 2.1% month on month in March 2021 From Food and Agriculture Organization of the United Nations

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The FAO food price index (FFPI) is an indicator to measure the monthly changes in the international prices of a basket of food commodities.

The average value of the FAO food price index (FFPI) in March 2021 was 118.5 points, 2.4 points (2.1%) higher than that in February. This is the tenth consecutive month that FFPI has risen to its highest level since June 2014.

The FAO grain price index in March averaged 123.6 points, down 2.2 points (1.7%) from February, ending an eight month upward trend, but still 25.9 points (26.5%) higher than the level in March 2020. Wheat export prices fell the most in March, down 2.4%, but still 19.5% higher than the same period last year.

The FAO vegetable oil price index in March averaged 159.2 points, up 11.8 points (8%) from February, the highest level since June 2011.

The FAO dairy price index averaged 117.4 points in March, up 4.4 points (3.9%) from February, the tenth consecutive month, up 16% from the same period last year. In March, the rise in international butter prices was mainly due to the slow start of the European milk production season and the increase in domestic demand. It is expected that the food service industry will recover and the supply will be slightly tight.

The FAO meat price index averaged 98.9 points in March, up 2.2 points (2.3%) from February, continuing the upward trend for the sixth consecutive month, but still slightly lower than a year ago. In Asian countries (mainly China), the import speed is accelerating, and the quotation of poultry and pork is increasing.

The FAO sugar price index in March averaged 96.2 points, down four points (- 4%) from February. This was the first decline after a sharp rise in the previous two months. However, the price of sugar is still more than 30% higher than that of the same period last year due to concerns about tight global supply in 2020 / 21.

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