World meals costs hit file excessive in 2022 Yesterday

A surge in the price of most meals commodities final yr, because the disruption brought on by Russia’s invasion of Ukraine raised issues of shortages, despatched the UN meals company’s common worth index to the very best stage on file.

The Meals and Agriculture Group’s (FAO) Meals Value Index, which tracks worldwide costs of essentially the most globally traded meals commodities, averaged 143.7 factors in 2022, up 14.3 per cent from 2021, and the very best since information began in 1990, the company mentioned on Friday.

The index had already gained 28 per cent in 2021 from the earlier yr because the world economic system recovered from the impression of the pandemic.

Meals costs surged after Russia’s invasion of Ukraine in February final yr on fears of disruptions to Black Sea commerce. They’ve pared a few of their good points since, partially due to a UN-backed grain export channel from Ukraine and the prospect of improved provides in producing international locations.

In December the benchmark index fell for the ninth consecutive month to 132.4 factors, in contrast with a revised 135.00 factors for November. The November determine was beforehand given as 135.7 factors.

“Calmer meals commodity costs are welcome after two very unstable years,” FAO chief economist Maximo Torero mentioned.

The decline within the index in December was pushed by a drop within the worldwide worth of vegetable oils, along with some declines in cereal and meat costs, however mitigated by slight will increase in these of sugar and dairy, the FAO mentioned.

Nonetheless over the entire of 2022, 4 of the FAO’s 5 meals subindexes – cereals, meat, dairy and vegetable oils – had reached file highs, whereas the fifth one, sugar, was at a 10-year excessive.

The FAO Cereal Value Index rose 17.9 per cent in 2022 owing to components together with important market disruptions, increased vitality and enter prices, hostile climate and continued robust world meals demand, the FAO mentioned.