TE24 International Desk:
Food prices fell dramatically in July after grain exports from Ukraine resumed, according to the Rome-based Food and Agriculture Organization (FAO). Citing the FAO, Xinhua reported that an agreement to allow grain shipments from Ukraine and coordination in the global supply chain helped ease price pressures. According to information published by
The United Nations agency said its monthly index of food prices fell 8.6% in July, the biggest drop in a month since 2008. Although this was the first major decline in a period, it was the third consecutive month the index fell.
Despite the July trend, the index is 5% higher than at the start of the year and 13% higher than a year ago. In April, the FAO index hit a record high due to rising fuel prices, reduced grain exports from Russia and Ukraine amid ongoing wars and other supply chain problems. All components of the index fell in July, led by its 11.5% decline in the index’s largest component, food grains and cereals.
The FAO said the development was partly linked to a key deal to open Ukraine’s main Black Sea port to export grain, one of the world’s top grain producers. But prices of grains and food grains are still about 25% higher than 12 months ago, he added.
According to the FAO, vegetable oil prices fell 19.2% to a 10-month low. This was influenced by Indonesia’s strong palm oil export quota. Weak global demand pushed dairy prices down 2.5% and meat prices down 0.5%, their first declines since last year.
The FAO Food Price Index is based on world prices for 23 food categories and covers the prices of 73 different commodities compared to a base year.
