São Paulo – The international food price index as measured by the United Nations Food and Agriculture Organization (FAO) was up 1% in March from February, according to information released by the FAO this Thursday (11th) in Rome. The main culprit was an 11% hike in dairy prices, which account for 17% of the index.<\/p>\n
According to the FAO, the month-on-month variation in dairy prices was one of the highest ever. The reason, according to a FAO press release, was hot and dry weather in Oceania, which prompted a significant decline in dairy and dairy products output in the region. <\/p>\n
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The UN agency notes that the prices used in the index are those of New Zealand exports, because the country is the industry’s leading exporter and answers to nearly one third of worldwide dairy trade. According to FAO, there was also an increase in prices from other major suppliers, such as the European Union and the United States, though not at the same levels. <\/p>\n
“The exceptional increase is in part a reflection of market uncertainty as buyers seek alternative sources of supply,” according to the press release. “In addition, dairy output in Europe has yet to come fully online after a particularly cold winter, which has delayed pasture growth to feed dairy animals,” it adds.<\/p>\n
Regarding cereals, however, the FAO has revised up its crop projection by three million tonnes. “World cereal production in 2013 could recover strongly barring bad weather in major producing regions,” according to the FAO. The harvest is estimated to be down only 2% from the all-time high 2011 output, according to the organization.<\/p>\n
The UN agency expects the wheat crop to be up 4% to 690 million tonnes – the second-best result ever, the best one being 700 million tonnes in 2011.<\/p>\n
There was no variation in cereals’ prices March-on-February. There was an increase in maize prices, offset by lower wheat prices, while rice remained stable. <\/p>\n
Oils and fats prices were down 2.5%, driven by soya oil, whose prices dropped due to good weather in South America, the prospect of a record crop in the United States, and the cancellation of purchases of the commodity by China. Palm oil prices also dropped. <\/p>\n
The meat price index was down 2% and sugar was up 1%, according to the FAO.<\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n