Global food prices drop to 6-year low

Dairy and vegetable oil price drops have led the FAO Food Price Index to its lowest level in six years.

Not since September 2009 was the index so low when the world was in the grips of the global economic crisis.

The FAO Food Price Index averaged 164.6 points in July, down 1% from June, and 19.4% from this time last year.

In a month dairy dropped 7.2% due to lower demand from China, the Middle East and North Africa and above average European Union milk output.

Vegetable oil plunged 5.5% for the month with a drop in palm oil prices “due to increased production in Southeast Asia combined with slower exports especially from Malaysia, and a further weakening of soy oil prices”.

Cereal prices rose 2% from June, but reamin 10% below the July 2014 level.

“For the second consecutive month, higher wheat and maize prices, in part due to unfavourable weather in North America and Europe, kept the cereal index rising, but rice prices continued to fall.”

Sugar rose 2.5% from June while meat stayed roughly similar with bovine price increases being offset by a price decline for pig and sheep meat. Poultry stayed stable.