World meals costs rose ‘sharply’ throughout 2021

The company’s Meals Value Index, which tracks month-to-month adjustments in worldwide costs, averaged 125.7 factors – a 28.1 per cent improve over 2020.

FAO Senior Economist Abdolreza Abbassian defined that, usually, excessive costs are anticipated to ease as manufacturing will increase to match demand.

This time, nonetheless, the persistently excessive price of inputs, the continuing international pandemic and ever extra risky weather conditions “depart little room for optimism a couple of return to extra steady market situations even in 2022.”

Yr’s finish

On the finish of the 12 months, world meals costs fell barely, as worldwide costs for vegetable oils and sugar fell considerably, the information exhibits.

The Meals Value Index averaged 133.7 factors, a 0.9 per cent decline from November, however was nonetheless up 23.1 per cent from the identical month the 12 months earlier than. Solely dairy posted an increase that month.

The Cereal Value Index additionally decreased 0.6 per cent; for the total 12 months, nonetheless, it reached its highest annual degree since 2012, rising 27.2 per cent.

Greatest gainers had been maize, up 44.1 per cent, and wheat, gaining 31.3 per cent. One of many world’s different key staple meals, rice, misplaced 4 per cent.

Oil and sugar

The Vegetable Oil Value Index declined 3.3 p.c in December, because of decrease international import demand, which may be linked to considerations over the affect of rising COVID-19 circumstances, which have led to delays within the provide chain.

For the 12 months as an entire, the Oil Index reached an all-time excessive, growing 65.8 per cent in contrast with 2020.

One other key staple, sugar, dropped by 3.1 per cent final month from November, reaching a five-month low.

FAO analysts mentioned this exhibits considerations over the affect of the Omicron variant on international demand in addition to a weaker Brazilian Actual, mixed with decrease ethanol costs.

For the 12 months as an entire, the Sugar Value Index rose 29.8 per cent, reaching its highest degree since 2016.

Meat and dairy

The Meat Value Index was “broadly steady” in December, however rose 12.7 per cent via the 12 months as an entire.

Dairy was the one class the place costs elevated within the final month of the 12 months, rising 1.8 per cent on November, principally due to decrease milk manufacturing in Western Europe and Oceania.

Cheese costs declined marginally final month, however for the 12 months total, the Dairy Value Index averaged 16.9 per cent greater than 2020.

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