The FAO food price index continues to fall

The index of global food prices recorded a further decline according to FAO, the United Nations Food and Agriculture Organisation. 

According to the FAO, which produces monthly food price index, prices of 2014 recorded a decline of 3.7%. So a third consecutive year of decline, bringing the price decline of 12.5% over the period.

The index is based on five families of commodities - grain, meat, milk, oils and sugar. Sugar lost 4.8%, due to high inventories at the main producer, Brazil. Prices of dairy products (-2.3%) also reached their lowest level in December since 2009, due to the slowdown in Russian and Chinese demand for milk powders, butter and cheese. Only the price of meat is on the rise (+ 8% on one year) of all basic foodstuffs.

Cereals marked a slight recovery (+ 0.4%) because of fears that Russia limit its exports.

source : afp