Rome: The United Nations Food and Agriculture Organization (FAO) announced that global food prices fell in October for the second consecutive month, driven by abundant global supplies of agricultural products.
According to Yemen News Agency, in its monthly report issued Friday, FAO stated that its Food Price Index-which tracks monthly changes in international prices of a basket of key food commodities-averaged 126.4 points in October, down from 128.5 points in September (after adjustment). The index was slightly lower than in the same period last year and 21.1 percent below its record high of March 2022.
The report noted that the index had reached its highest level in two years last July before stabilizing in August and then declining in September due to falling sugar prices-a trend that continued in October. The Sugar Price Index dropped 5.3 percent, reaching its lowest level since December 2020, mainly due to strong production in Brazil and expectations of increased supply from Thailand and India, as well as lower crude oil prices.
The Dairy Price Index fell 3.4 percent compared to September, reflecting lower prices for milk powder and butter amid increased export availability from the European Union and New Zealand.
Meanwhile, the Meat Price Index declined 2 percent after eight consecutive months of increases, mainly due to falling pork and poultry prices, while beef prices continued to rise, supported by strong global demand.
In contrast, the Vegetable Oil Price Index rose slightly by 0.9 percent, reaching its highest level since July 2022.
In a separate report, FAO projected that global grain production in 2025 will reach a record 2.99 billion tonnes, up from last month's forecast of 2.971 billion tonnes, marking a 4.4 percent increase compared to 2024.
The organization added that corn and rice production are expected to reach unprecedented levels, supported by improved agricultural conditions in several key producing regions.