São Paulo – World food prices fell for a third consecutive month in April, hit by the economic and logistical impact of the COVID-19 pandemic, the United Nations food agency reported on Thursday (7). The Food and Agriculture Organization (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 165.5 points last month, down 3.4%.
The sugar price index fell to a 13-year low, plunging by 14.6% from March. The vegetable oil price index fell by 5.2%, hit by falling palm, soy and rapeseed oil values, while the dairy index dropped 3.6%, with butter and milk powder prices posting double-digit declines. The meat index shed by 2.7%, with a partial recovery in import demand from China failing to balance a slump in imports elsewhere.
“The pandemic is hitting both the demand and supply sides for meat, as restaurant closures and reduced household incomes lead to lower consumption and labor shortages on the processing side are impacting just-in-time production systems,” FAO senior economist Upali Galketi Aratchilage said.
On the other hand, cereal price index declined only slightly, as international prices of wheat and rice rose significantly while those of maize dropped sharply. Rice prices rose by 7.2% from March, due in large part to temporary export restrictions by Vietnam that were subsequently repealed.
Translated by Guilherme Miranda
