Geneva Press Briefing: Food price falls for the twelfth month in a row

Geneva - Upali Galketi Aratchilage, FAO Senior Economist at the Markets and Trade Division, addressed the Geneva press corp on the latest updates of the FAO Food Price Index for March 2023 at the Biweekly Press Briefing organized by the United Nations Information Service (UNIS) in Geneva.

Aratchilage informed that the Food Price Index (FPI) for March, fell for the twelfth consecutive month, down 2.8 percent month-on-month and 20.5 percent year-on-year, from the peak in March 2022. The decline in the index in March from the previous month was due to drops in international prices of cereals and vegetable oils and a slight drop in dairy prices, partially counterbalanced by some increases in sugar and meat prices. Much of the decline could be attributed to abundant supplies and better production outlooks.

Aratchilage stated that abundant supplies were especially true for cereals, wheat, maize, and rice. FAO’s latest forecast for world cereal production in 2022/23 (2,777 million tons) was close to the record harvest in 2021/22 (2,812 million tons). Wheat production in most leading production regions, including the European Union, the Russian Federation, North America, Asia and Near East Asian countries, showed greater potential, only slightly behind the record harvest in 2022. The extension of the Black Sea Grain Initiative had also contributed to reducing potential market anxiety, further helping cereal prices decrease.

Although international food prices, as measured by the FFPI, had declined for the last year, the global food prices remained 30 percent higher than the average in 2020. Domestic food price inflation remained elevated in almost all low- and middle-income countries, with many experiencing double-digit inflation.

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 (11 April 2023)

FAO Food Price Index website

Global press release