World food prices fall in 2016 for fifth straight year - UN FAO

Wednesday, 18 January 2017 00:00 - - {{hitsCtrl.values.hits}}

ROME (Reuters): World food prices fell for a fifth straight year in 2016 as losses in cereals, meat and dairy outweighed rises in sugar and vegetable oils, the United Nations food agency said last week.

Prices remained stable in December from the month before, according to the Food and Agriculture Organization’s (FAO) main food price index, which has edged up steadily after hitting a seven-year low in January.

The full year 2016 logged a 1.5% annual drop in the index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar.

December’s reading of 171.8 points versus 171.9 points in November resulted from strong gains in vegetable oils and dairy largely offseting falls in sugar and meat, the FAO said.

Sugar prices rose by about a third across the year, despite an 8.6% dip in December that mainly stemmed from a weaker Brazilian real against the dollar and an expected jump in production in Brazil’s main sugarcane-growing region.

“Economic uncertainties, including movements in exchange rates, are likely to influence food markets even more ... this year,” FAO senior economist Abdolreza Abbassian said.

Cereal prices steadily declined during the year, ending 39% below their 2011 peak.

Vegetable oil prices reached their highest since July 2014 in December. Palm oil rose on low global inventory levels and tight supplies, while soy oil quotations were boosted by the prospect of rising use for biodiesel in North and South America.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.