São Paulo – Global food prices dropped in April this year as against the same month last year, disclosed on Thursday (3) the Food and Agriculture Organization of the United Nations (FAO).
The institution elaborates a food price point index. The more points, the more expensive the values measured in the FAO Food Forecast, which is developed every six months. In April, the institution’s index reached 214 points, or a reduction of three points, or 1.4%, over March 2012. In April 2011, when the price was record, the index was at 235 points.
The FAO says that this is the first price reduction in three months and shows that the index is lower than in April 2011, though much higher than registered prior to the 2008 food crisis, when it was below 200 points. Furthermore, the FAO forecasts lower demand this year.
Wheat production dropped, but that of cereals was the same this year as in 2011. The production of oleaginous plants, in turn, should be lower than demand, which could push commodity prices up. The FAO forecasts that production of pork and chicken should rise, which should elevate the offer of meats by 2%, equivalent to 302 million tonnes.
*Translated by Mark Ament
