Global Food Prices Decrease in November: FAO Report

November 2023 Food Price Analysis

IRFAN DONAT

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

Decline in Price Indices

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

Grain Prices and Market Dynamics

The FAO Grain Price Index increased by 1.8% in November, but remains 5.3% below the levels of the previous year. Overall, a comfortable supply situation and favorable harvest reports 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 declined by 2.6% in November, reaching the lowest level in the last five months. This is related to the drop in prices of palm and sunflower oils. The expected high production in Malaysia has contributed to reducing prices compared to competing oils.

Developments in Meat Prices

In November, the FAO Meat Price Index decreased by 0.8% month-on-month. However, compared to the same period last year, it shows an increase of 4.9%. The decrease 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 decreased by 3.1% in November. This decline has been supported by ample stocks in the European Union and New Zealand. While butter and milk powder prices fell, cheese prices showed the least decrease due to strong demand.