FAO sees food prices decline for third year9 Jan 2015
FAO’s monthly Food Price Index declined in December after three months of stability. Continued large supplies and record stocks combined with a stronger US dollar and falling oil prices contributed to the decline. The December Food Price Index averaged 188.6 points, a drop of 1.7% from November, led down by sugar and palm oil. For […]
FAO’s monthly Food Price Index declined in December after three months of stability. Continued large supplies and record stocks combined with a stronger US dollar and falling oil prices contributed to the decline.
The December Food Price Index averaged 188.6 points, a drop of 1.7% from November, led down by sugar and palm oil.
For the whole of 2014, the Food Price Index averaged 202 points, down 3.7% from 2013, marking the third consecutive annual decline.
This year-on-year drop came despite FAO’s sub-index for meat rising to an all-time high annual average of 199 points, up 8.1% from 2013. Cereals, by contrast, dropped 12.5% from the previous year, buoyed by forecasts of record production and ample inventories.
FAO’s Food Price Index is a trade-weighted index that tracks prices of five major food commodity groups on international markets. It aggregates price sub-indices of cereals, meat, dairy products, vegetable oils and sugar.
Four of those indices fell in 2014 and are at, or close to, their lowest levels in five years.
All indices down except for meat
The FAO Cereal Price Index averaged 183.9 points in December, up 0.4% from November as wheat prices rose on the back of worries that Russia may restrict exports. However, the increase was capped by the stronger U.S. dollar. Moreover, rice prices fell markedly amid abundant export supplies.
The FAO Vegetable Oil Price Index average declined by 2.4% to a five-year low of 161 points in December, due mainly to depressed demand for palm oil as a biodiesel feedstock, itself linked to falling global oil prices.
The FAO Dairy Price Index declined by 2.3% to 174 points, its lowest level since late 2009, as slowing imports by China and Russia left abundant export supplies for international markets. Price declines were greatest for milk powders, butter and cheese.
The FAO Meat Price Index also declined in December, down 1.9% from the previous month, as a stronger U.S. dollar curbed price quotations for beef and mutton from Oceania and pork from Europe. However, at 204 points, this index is near its monthly all-time highs, and on a full-year basis rose 8.1% in 2014 from 2013, the only commodity group to post higher average prices over the year.
The FAO Sugar Price Index dropped 4.8% to 219 points in December, largely because of ample supplies in major producing countries such as Brazil. Falling crude oil prices, which reduce demand for sugar crops to be converted into ethanol, also weighed on international sugar quotations in December.
Lower crude oil prices spelled bearish price trends for commodities that can be used for biofuels, notably sugar but also palm oil, which has the largest weight inside the vegetable oils index, said FAO senior economist Abdolreza Abbassian. “Ample supplies aside, the drop in oil prices obviously makes ethanol production less attractive,” he said.
Digital innovations and holistic health in the Chinese market
13 Jun 2023
Health and wellness consumers in China are much younger than in the West, according to industry experts who say a tendency to act preventatively rather than reactively, coupled with a digital-first culture, gives brands an opportunity to retain consume...Read more
Brands must ‘do better’ to meet maternal nutrition needs
6 Jun 2023
Brands in the health and nutraceutical space must work harder to overcome common challenges and meet the nutritional needs of pregnant and post-natal women, says Caroline Munari, global R&D platform lead for maternal nutrition at Nestlé's sp...Read more
Most categories trading down in US supplements market, says SPINS
5 Jun 2023
Hit by the cost-of-living crisis, sales of most US vitamin and mineral supplements have declined – with the exception of probiotics, digestive aids, and homoeopathic medicines, according to SPINS data.Read more
Should brands make healthy products more affordable?
17 May 2023
Do health and wellness products need to be affordable or are consumers willing to pay a premium for a health benefit despite the cost-of-living crisis? We asked two leading market experts – and received different answers.Read more
Health innovation takes centre stage at Vitafoods Europe
26 Apr 2023
In just two weeks, Vitafoods Europe will showcase the biggest nutraceutical innovations, trends, and startups thanks to its conference programme with expert speakers, Future of Nutrition Summit, and Startup Innovation Challenge.Read more
Redefining brand value: Empower consumers to be resourceful and creative in the face of rising costs [Interview]
16 Nov 2022
With inflation, greater instability, and supply chain disruptions as a global backdrop of 2022, consumers are increasing looking for value, products with functional benefits, and convenience for the coming year, says Innova Market Insights.Read more
MicroThermics’ Formulators Guide to Process Selection for Plant-Based Beverages
15 Nov 2022
Plant-based beverages & products are mainstream! Come to FIE booth 4D122 & read our whitepaper to see how processing in the lab at commercial HTST & UHT conditions gets you to market faster for less!Read more
Affordability, indulgence, and health: Top trends for 2023 [Interview]
14 Nov 2022
Consumers want affordable alternatives that offer the same great taste and health benefits as their favourite products. Brands that can deliver on this will dominate in 2023, according to Mintel.In the food and beverage space, consumers are key in driv...Read more
Give your fermented protein drinks a clear head start
10 Nov 2022
Fermented protein beverages are rising in popularity as more consumers make efforts to strengthen their health and wellbeing. Made for the ready-to-drink segment, products such as kombucha and drinking yoghurt are gaining traction as healthier alternat...Read more
Red Bull’s ex-head of marketing shares strategies for social branding success [Interview]
21 Oct 2022
Ex-head of marketing at Red Bull Europe and current CEO of energy drink TENZING, Huib van Bockel, shares his top tips for cutting through the marketing noise and creating a socially relevant brand.Read more