Global Food Prices Decrease in November: FAO Report

Food Price Analysis - November 2023

IRFAN DONAT

Global food prices have shown a noticeable decline as of November 2023. The FAO Food Price Index fell by 1.2% month-on-month, marking a decline for the third consecutive time. On an annual basis, there is a decrease of 2.1%.

Decline of Price Indices

This decline has been supported by decreases in dairy products, meat, sugar, and vegetable oil prices; however, the increase in the grain index has limited these declines.

Grain Prices and Market Dynamics

Although the FAO Grain Price Index showed a monthly increase of 1.8% in November, it remained 5.3% below the levels of the previous year. Generally, a comfortable supply situation and positive harvest news from Argentina and Australia led to a 2.5% increase in global wheat prices. This is due to factors such as China's desire to purchase from the U.S. and ongoing conflicts in the Black Sea region.

Changes in Vegetable Oil Prices

The FAO Vegetable Oil Price Index decreased by 2.6% in November, reaching its lowest level in the last five months. This is related to the decline in the prices of palm and sunflower oils. The anticipated high production in Malaysia has led to lower prices compared to rival oils.

Trends in Meat Prices

In November, the FAO Meat Price Index decreased by 0.8% month-on-month. However, compared to the previous year, it shows an increase of 4.9%. The decline in prices, especially for pork and poultry, is due to weak global market demand and competition in Brazil's exports.

Trends in the Dairy Products Market

The FAO Dairy Price Index fell by 3.1% in November. This decline has been supported by abundant stocks in the European Union and New Zealand. While butter and milk powder prices have decreased, cheese prices have shown the least decline due to strong demand.