News

FAO: cheese, maize drive rising prices

10 Jun 2019

Global food prices rose for the fifth consecutive month in May, pushed up by rising prices of cheese and maize due to adverse weather conditions.

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, averaged 172.4 points in May, up 1.2% from the previous month while still 1.9% below its level in May 2018.

FAO: cheese, maize drive rising prices

The FAO Dairy Price Index rose 5.2% from April, nearing a five-year high. The upswing, centered on cheese prices, reflected robust global import demand amid tight export availabilities from drought-ridden Oceania.

The FAO Cereal Price Index rose 1.4%, entirely driven by a sudden surge in maize price quotations in response to diminishing production prospects in the United States of America, where planting of the crop is off to the slowest pace ever recorded due to widespread flooding and rain. Wheat prices generally dipped, while those of rice held broadly steady.

The FAO Sugar Price Index declined 3.2% for the month, as prospects of increased output in India, the world's largest producer, outweighed a reported 17% annual drop in production in Brazil. Weaker international energy prices, which reduce demand for sugarcane to produce biofuels, also negatively affected sugar prices.

The FAO Vegetable Oil Price Index declined 1.1% as palm oil values declined on account of large inventory levels in leading exporting countries. Prices of soy, sunflower ad rapeseed oils increased modestly.

The FAO Meat Price Index was up marginally in May as pig meat price quotations continued to rise amid strong import demand from East Asia, where the African Swine Fever has decimated production. Bovine meat prices eased from their April highs, reflecting elevated global export supplies.

FAO's latest forecast for world cereal production in 2019 - available in the Cereal Supply and Demand Brief - points to an increase of 1.2% from the previous year to reach 2 685 million tonnes, a sharp downward revision from the forecast made in May when global cereal production was predicted to expand by 2.7%.

The year-on-year increase in global cereal production reflects expansions of wheat and barley production, while global rice output is likely to remain close to last year's record level. Worldwide maize output, however, is now seen to fall, with U.S. production expected to shrink by 10% from the previous year amid a much reduced pace of plantings due to unfavourable weather conditions.

World cereal utilization in the year ahead is now forecast to reach 2 707 million tonnes, somewhat down from the May forecast but still 1% higher than in 2018/19. Global rice utilization is predicted to reach 518 million tonnes, a 1.4% annual increase, while that of wheat is expected to grow 1.2%, reaching 755 million tonnes.

Based on the new estimates for production and utilization, world cereal stocks could decline by as much as 3% in the new season, hitting a four-year low of 830 million tonnes. The anticipated decline would result in the global cereal stock-to-use ration dipping below 30%, which, nonetheless, still points to a relatively comfortable supply level.

World trade in cereals is forecast to rise to 414 million tonnes, up 1.4% from the estimated level for the previous year, led by a strong rebound in wheat trade driven by a stronger import demand by several countries in Africa and Asia, combined with expectations of large export availabilities in the Black Sea region and the European Union.

Related tags

Events & Exhibitions

Related news

Sustainability meets innovation at Fi Europe 2023's Sustainability Ingredients Zone

Sustainability meets innovation at Fi Europe 2023's Sustainability Ingredients Zone

9 Jan 2024

Fi Europe’s Sustainable Ingredients Zone showcases ingredients forging a path toward a greener future. Three innovators are redefining what sustainability within the food and beverage industry means, with upcycled products, regenerative agriculture, an...

Read more 
Unleashing the power of plants at Fi Europe’s New Product Zone

Unleashing the power of plants at Fi Europe’s New Product Zone

5 Jan 2024

In the diverse landscape of plant-based innovation, Fi Europe 2023's New Product Zone spotlighted ten plant-based ingredients, tailored to meet the rising demand for sustainable and delicious options.

Read more 
Meet the innovative ingredients showcased at Fi Europe’s New Product Zone

Meet the innovative ingredients showcased at Fi Europe’s New Product Zone

3 Jan 2024

The Food Ingredients category at Fi Europe’s New Product Zone featured 19 distinct and innovative products. From fermented delights to sustainable proteins, these ingredients are ready to make their mark in the market.

Read more 
Fi Europe’s New Product Zone elevates the nutrition of everyday indulgences

Fi Europe’s New Product Zone elevates the nutrition of everyday indulgences

22 Dec 2023

At Fi Europe 2023's New Product Zone, eight health ingredients, each offering an enhanced nutritional profile of various products, were on display. These ingredients address the evolving needs of the food and beverage industry and cater to consumers se...

Read more 
Fi Europe’s New Product Zone explores fresh possibilities with five natural ingredients

Fi Europe’s New Product Zone explores fresh possibilities with five natural ingredients

20 Dec 2023

Fi Europe 2023's New Product Zone unveils five natural ingredients, each catering to the growing demand for clean products and embodying ethical and sustainable choices for today's conscious consumers.

Read more 
Water-conscious consumers, upcycled food, and tech-driven sustainability: Highlights from Fi Europe, part 2

Water-conscious consumers, upcycled food, and tech-driven sustainability: Highlights from Fi Europe, part 2

14 Dec 2023

With climate change becoming a tangible reality, consumers’ environmental concerns are changing. At Fi Europe, market analysts revealed how people are now interested in everyday issues like water shortages and tech-driven solutions such as GM drought-r...

Read more 
The food industry’s single-use packaging problem

The food industry’s single-use packaging problem

12 Dec 2023

The food industry’s reliance on single-use packaging is a sustainability “sticking point” with viable alternatives not widely available – but new EU rules mean food businesses will remain responsible for the collection and disposal of the packaging the...

Read more 
Snack trends, ingredient claims, and plant-based perceptions: Highlights from Fi Europe 2023, part 1

Snack trends, ingredient claims, and plant-based perceptions: Highlights from Fi Europe 2023, part 1

7 Dec 2023

Value-led snacking, sustainability storytelling, and the importance of having a ‘star ingredient’: we asked consumer analysts and market experts at Fi Europe about the trends and innovations that are shaping the food industry.

Read more 
HELM and Allied Biotech partnership make possible natural crystal-clear colours

HELM and Allied Biotech partnership make possible natural crystal-clear colours

7 Nov 2023

As one of the leading Carotenoid producers, Allied Biotech has successfully launched the clear colour product lines. The new products are mainly used in transparent applications. Clear colours are ideal candidates for replacement of the artificial colo...

Read more 
Impact taste in your recipe substantially - through Chilled-Fresh ingredients

Impact taste in your recipe substantially - through Chilled-Fresh ingredients

29 Sep 2023

Bresc is the European pioneer of Chilled-Fresh ingredients for culinary professionals that has its origins in French Cuisine. While focusing on best raw materials choice, Bresc’s recipes are conceived to inspire product development and to add-up in tas...

Read more