Geneva Press Briefing: FAO Food Price Index shows a slight decline in January
Geneva - Erin Collier, FAO Economist of Markets and Trade Division, addressed the Geneva Press Corp on the latest updates of the FAO Food Price Index for January 2023 at the Biweekly Press Briefing organized by the United Nations Information Service (UNIS) in Geneva.
Collier said the FAO Food Price Index (FFPI) had declined slightly in January, reflecting decreases in the prices of vegetable oils, dairy and sugar. Vegetable oil declined the most in January, by nearly 3 percent, largely driven by subdued import demand for all major vegetable oils, as well as ample supplies of sunflower and rapeseed oil. Dairy prices also decreased due to subdued import demand and increased export availability. Sugar prices fell due to positive production prospects in Thailand, as well as favorable weather conditions in Brazil’s key sugar cane growing areas.
By contrast to those declines, meat and cereal prices remained nearly stable month-on-month. Meat prices were down fractionally from December levels as lower prices for bovine, poultry and pig meats had offset an increase in ovine meat prices. Cereal prices were up fractionally owing to an increase in rice prices, due to tighter availability, strong local demand in some Asian exporting countries and exchange rate movements, and a marginal increase in coarse grain prices, reflecting firmer maize prices due to higher demand for supplies from Brazil and appreciation of the Real, on top of concerns over dry conditions in Argentina.
In January, the FFPI stood nearly 18 percent below its peak reached in March of 2022, and 3.3 percent below its level one year ago. However, food prices remained elevated, especially for cereals which, of all the commodity groups, remained the highest priced compared to their levels one year ago. Meat, dairy and sugar were also higher compared to their January 2022 levels.
Responding to questions, Collier said that the Food Price Index reflected major export prices, not regional trends in retail food prices. Current inflation rates and higher debt levels were contributing to rising import costs for maize in Africa.
FAO Liaison Office in Geneva
Based in Geneva, a hub of international cooperation and multilateral diplomacy, FAO Liaison Office (LOG) promotes to the Geneva-based partners FAO’s contribution to the 2030 Agenda through its 2022-31 Strategic Framework. Moreover, the Liaison Office monitors and informs the Geneva-based deliberations to strategically position the Organization in line with its mandate and champion key thematic issues. As part of its liaison work, FAO in Geneva cooperates with the United Nations Information Service (UNIS) in Geneva to communicate and highlight the role of food and agriculture in achieving the Sustainable Development Goals (SDGs).
Related links
- Geneva Press Briefing (3 February 2023)
- FAO Food Price Index website
- Global press release link