Pricey red meat and vegetable oils helped defeat price decreases in dairy and sugar to notch up the FAO Food Price Index (FFPI) in April 2024.

The Food and Agricultural Organization (FAO) reported on May 3, 2024 that FFPI inched up to 119.1 points or 0.3% between March and April.

However, worldwide food prices were lower year-on-year than in April 2023 by 9.6 points or 7.4% thanks to improved supplies.

Cereals up 0.3%

Among the contributing factors for costlier food in April 2024 was cereal, whose index climbed to 11.2 points. April’s prices were 0.2 points above those of March, a 0.3% increment. 

Wheat prices increased in mid-spring following below-average rains in Caucasian Russia and the U.S., but later stabilized late April.

Maize, on the other hand, saw increases in prices due to high global demand versus downgrades in Brazil’s production.

Rice was the only cereal that saw a fall in its April price, by 1.8%, after rapid harvest in India.

Meat & Vegetable Oil push FAO Food Price Index

FFPI surged from vegetable oil, which scaled up by 0.3%, with April 2024 marking the highest price in 1 year. 

Causing this increment was unfavorable weather in eastern Europe and corresponding high demand for rapeseed oil. The high import quotations for rapeseed oil displaced low soybean oil prices following Brazil’s soy harvest in the 2023-24 season.

Meat, in its part, shot up by 1.9 points or 1.6% to settle at 116.3 points between March and April. Though world meat prices were still 0.4% lower than those of April 2023, they however marked a 3-month consecutive climb. 

Poultry prices led the increment due to large imports by West Asia nations, amid avian flu-related supply dip.

Cattle and other bovine meat prices upped primarily due to huge imports by major nations like the United States. This was despite increment of supplies in key sources like Australia.

Commodities that Fell

April’s index was cooled by soft sugar prices that fell by 5.9 points or 4.4%, month on month. Plenty of sugarcane in India and Thailand as well as a bumper Brazilian crop outlook helped cool the prices.

Dairy also balanced the index as global prices dipped by 0.3% to stand at 123.7 points.  This was a surprise down performance, given milk product prices have been up 5 months on end. The recent discovery of avian influenza in dairy cattle did not factor in on the pricing report.

Thus, the April 2024 FAO Food Price Index marked food as more expensive month-on-month but cheaper year-on-year.