The United Nations Food and Agriculture Organization's (FAO) world food index fell to its lowest level in nearly three years in January, hit by falling meat and cereal prices.
The FAO said on February 2 that its food index, which tracks the most globally traded food commodities, averaged 118.0 points in January, down from 119.1 points in December 2023. This is the lowest index since February 2021.
FAO said wheat export prices fell in January due to strong competition among exporters and new supplies from southern hemisphere harvests. Meanwhile, maize prices fell sharply, reflecting improved crop conditions and the start of harvests in Argentina and larger supplies in the United States. The meat price index fell for the seventh consecutive month as surplus supplies from major exporting countries pushed down poultry, beef and pork prices.
In another report, the FAO said world cereal production in 2023 is likely to reach an all-time record high of 2.836 billion tonnes, up 1.2% from 2022.