World food prices continue to rise: butter breaks records

The UN Food and Agriculture Organization (FAO) report indicates a rise in world food prices, with the food price index in March nearly unchanged from February at 127.1, marking a 6.9% increase from the previous year. This rise is due to high demand and reduced production. The vegetable oil price index experienced a 3.7% increase in March, while the dairy price index remained the same as February. Butter prices rose by 3.9% due to strong retail sales and increased demand. The cereal price index decreased by 2.6% in March, and the meat price index increased by 0.9%, largely due to higher pork prices. In contrast, the sugar price index fell by 1.4% due to decreased global demand. The increase in dairy raw material costs is primarily due to the rise in feed costs, linked to a predicted low harvest in 2024, and the increase in electricity costs.

World food prices continue to rise. The main reason was the reduction in production and high demand. The UN Food and Agriculture Organization (FAO) reported that the food price index in March was practically unchanged from February and amounted to 127.1. It is noted that the decrease in the price indices for cereals and sugar compensated for the increase in the price indices for meat and vegetable oils. Thus, the FAO index is 6.9% higher than a year ago, but lower than the peak value in March 2022 after Russia's full-scale invasion of Ukraine. The vegetable oil price index in March averaged 161.8 points, which is 3.7% higher than in February. International prices for rapeseed and sunflower oil have increased since February due to reduced supplies from major exporters and stable demand. The dairy price index averaged 148.7 points in March, unchanged from February. Butter prices rose 3.9% from February, driven by strong retail sales and rising demand amid seasonally depressed ...