Page 24 - Vol.36-No.9 issue

FOOD PROCESSING

FAO FOOD PRICE INDEX RISES SHARPLY

Global food commodity prices rose sharply in November to their highest level in nearly six years,
according to a benchmark United Nations report released today.

World trade in cereals in 2020/21 is
forecast to rise 3.4 percent from the pre-
vious year to 454.6 million tonnes, driven
primarily by a faster than expected pace
in maize sales by the U.S.A. and contin-
ued strong purchases from China.
COVID-19, La Niña and
food insecurity

The impact of the COVID-19 pandem-
ic, particularly in terms of income loss-
es, is an important driver of the levels of
global food insecurity. The pandemic is
exacerbating and intensifying already
fragile conditions caused by conflicts,
The FAO Food Price Index averaged percent below its value a year ago. Pric- pests and weather shocks, including re-
105.0 points during the month, up 3.9 es of bovine, ovine and pig meats all cent hurricanes in Central America and
percent from October and 6.5 percent increased, while those of poultry meat floods in Africa.
higher than its value a year earlier. The declined. Forty-five countries, 34 of them in Afri-
monthly increase was the sharpest since ca, continue to be in need of external as-
July 2012, putting the index at its high- FAO trims world 2020 sistance for food, according to the quar-
est level since December 2014, the Food cereal output forecast terly Crop Prospects and Food Situation
and Agriculture Organization said. report, also published today by FAO’s
The FAO Food Price Index tracks FAO has further lowered its forecast for Markets and Trade division.
changes in the international prices of the global cereal production in 2020, which According to the report, aggregate
most globally traded food commodities. now stands at 2 742 million tonnes - still cereal production by the 51 Low-Income
All of its sub-indices rose in November. a record high and 1.3 percent above the Food-Deficit Countries is anticipated to
previous year’s outturn.
The FAO Vegetable Oil Price Index The new forecasts released today with grow this year to 496.3 million tonnes -
gained a stunning 14.5 percent in the FAO’s Cereal Supply and Demand Brief some 7 percent higher than the last five-
month, led by an ongoing rally in palm point to world coarse grains production year average - thanks to large outputs in
oil prices linked to sharp contractions in of 1 470 million tonnes, wheat production Southern Africa and Far East Asia. How-
world inventory levels. ever, cereal import requirements in the
of 761.7 million tonnes, and rice output 2020/21 marketing year are estimated
The FAO Cereal Price Index rose 2.5 of 508.4 million tonnes. to rise to 73.9 million tonnes, mostly re-
percent from October and averaged 19.9 Looking ahead, planting of the north- flecting increased needs among Sub-Sa-
percent higher than in November 2019. ern hemisphere’s winter wheat crop is haran African countries.
Wheat export prices rose, linked to re- underway and remunerative prices are
duced harvest prospects in Argentina, expected to increase sowings in sever- The report notes that the presence of
as did maize prices on account of lower al major producing countries. However, La Niña heightens the risk of above-av-
output expectations in the United States crop conditions in the United States of erage rainfall in Southern Africa and
of America and Ukraine as well as large America are moderately poorer due to East Asia, while parts of Near East Asia
purchases by China. International rice dry weather conditions, influenced by and East Africa are expecting reduced
prices held steady during the month. the prevailing La Niña weather phenom- rains, conditions that may result in ad-
verse production shocks.
The FAO Sugar Price Index rose 3.3 enon.
percent month-on-month amid grow- The 45 countries in need of external
ing expectations of a global production World cereal utilization in 2020/21 assistance for food are: Afghanistan,
shortfall in the upcoming marketing sea- is now forecast to rise to 2 744 million Bangladesh, Burkina Faso, Burundi,
son as unfavorable weather conditions tonnes, up 1.9 percent from 2019/20, led Cabo Verde, Cameroon, Central Afri-
drove weaker crop prospects in the Eu- by expectations of increasing feed use of can Republic, Chad, Congo, Democratic
ropean Union, the Russian Federation maize and sorghum in China as well as People’s Republic of Korea, Democrat-
and Thailand. a rise in the production of maize-based ic Republic of Congo, Djibouti, Eritrea,
ethanol in Brazil and the U.S.A.
Eswatini, Ethiopia, Guinea, Haiti, Iraq,
The FAO Dairy Price Index increased Kenya, Lebanon, Lesotho, Liberia, Libya,
0.9 percent to near an 18-month high, Worldwide cereal stocks by the close Madagascar, Malawi, Mali, Mauritania,
driven largely by firmer butter and of seasons in 2021 are predicted to de- Mozambique, Myanmar, Namibia, Niger,
cheese prices and surging retail sales in cline to 866.4 million tonnes, translating Nigeria, Pakistan, Senegal, Sierra Leone,
Europe during a seasonal low period for into a global stock-to-use ratio of 30.7 Somalia, South Sudan, Sudan, Syrian
milk production in the region. percent - which FAO notes is a five-year Arab Republic, United Republic of Tan-
low but still a relatively comfortable lev-
The FAO Meat Price Index rose 0.9 el. zania, Uganda, Venezuela, Yemen, Zam-
percent from October, but it is still 13.7 bia and Zimbabwe.
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22 Vol. 36 No. 9