Unsafe foods that contain harmful bacteria, viruses, parasites, or chemicals such as heavy metals can cause more than 200 diseases.
The International Food Price Index rose 1.1% in March, affected by higher international quotations for vegetable oils, dairy products and meat, according to a report released today by the Food and Agriculture Organization of the United Nations. At the same time, global cereal production is forecast to improve.
The FAO Food Price Index is a measure of the monthly change in the international prices of a basket of food commodities. In March 2024, the FAO Food Price Index averaged 118.3 points, down 7.7 percent compared to the same period in the previous year.
The vegetable oil price index led the gains
The FAO Vegetable Oil Price Index led the gains in March, rising 8% month-on-month and a one-year high, while prices for palm, soybean, sunflower and rapeseed oils all rose. Among them, the increase in international palm oil prices was due to seasonal production declines in major producing countries, while domestic demand in Southeast Asia was strong. World soybean oil prices rebounded from multi-year lows, supported by strong demand from the biofuels sector, particularly in the United States and Brazil.
The FAO Dairy Price Index rose 2.9 percent month-on-month in March, marking the sixth consecutive month of growth, driven by higher cheese and butter prices. The meat price index rose 1.7% month-on-month in March, with international prices for poultry, pork and beef rising.
In contrast, the FAO Cereal Price Index fell by 2.6 percent month-on-month in March and by 20 percent compared to the same period in 2023. Global wheat export prices contributed the most to the weakness of the index, mainly due to the ongoing fierce export competition between the European Union, Russia and the United States, while China cancelled some wheat purchases. Corn export prices rose slightly month-on-month, partly due to the logistical difficulties faced by Ukraine. In addition, the FAO Rice Price Index declined by 1.7 percent this month, mainly reflecting sluggish global import demand.
The FAO Sugar Price Index fell 5.4 percent in March from March, mainly due to an upward revision of India's 2023/24 sugar production forecast and an accelerated harvest of the sugar crop in Thailand.
World cereal production is forecast to be positive
FAO also released its latest Cereal Supply and Demand Brief on Friday, raising world cereal production in 2023/24 to 2 841 million tonnes, reflecting revised production expectations for maize, rice and wheat.
World cereal utilization in 2023/24 is forecast at 2 828 million tonnes, 1.3 percent above the 2022/23 level. The latest forecast for world cereal stocks at the end of the 2024 season stands at 894 million tonnes, up 2.3 percent from their opening levels. According to the latest forecast, the global cereal stocks-to-use ratio in 2023/24 stands at 31.0 percent.
Global trade in cereals in 2023/24 is forecast at 485 million tonnes, up 1.7 percent from the previous season's level. International trade in coarse grains expanded from 2022/23 levels, while trade in wheat and rice is expected to contract slightly.
FAO also revised its forecast for global wheat production in 2024 to 796 million tonnes, up 1.0 percent from 2023.
Planting of coarse grain crops in northern hemisphere countries in 2024 is about to begin, while early planting crops south of the equator have already been harvested. Argentina's output is expected to be higher than the 2023 drought-affected crop level, while Brazil and Southern Africa are expected to see a decline this year.
