A decline in demand drove worldwide bovine meat costs down in December, based on the most recent Meals Worth Index report from the Meals and Agriculture Organisation (FAO) of the United Nations.
The FAO Meals Worth Index (FFPI), printed at the moment (Friday, January 6) – which tracks the month-to-month modifications in worldwide costs of a basket of meals commodities – reveals that the meat value index in December dropped by 1.2% from November.
Particularly, the FAO Meat Worth Index averaged 113.8 factors in December, down 1.4 factors from November, which was the sixth month in a row the place a decline was recorded.
In response to the FAO, worldwide costs of bovine meat fell final month due to the next provide of slaughter cattle in a number of giant producing international locations and “lacklustre world demand for medium-term provides”.
Poultry meat costs additionally fell again as provides remained regular regardless of manufacturing points due to the influence of avian influenza (hen flu) outbreaks.
Nonetheless, world pigmeat costs confirmed a robust enhance primarily pushed by pre-Christmas demand, particularly in Europe.
Total in 2002, the FAO Meat Worth Index averaged 118.9 factors, up 11.2 factors from 2021, which was the best annual common since 1990.
Individually, the most recent FAO report additionally reveals that the Dairy Worth Index elevated by 1.2% in December after 5 months of consecutive declines.
“Greater worldwide cheese costs, reflecting tightening market situations, drove the month-to-month enhance within the index, whereas worldwide quotations for butter and milk powder declined,” the report outlined.
The FAO Dairy Worth Index averaged 139.1 factors in December – up 1.5 factors from November.
The report highlights that in December, worldwide cheese costs rose, “reflecting a strong world import demand”, and likewise excessive inside retail and companies sector gross sales, particularly in western Europe.
Nonetheless, worldwide butter costs fell for the sixth consecutive month primarily due to “continued sluggish world import demand”.
In the meantime, worldwide milk powder costs additionally decreased barely due to decrease costs in western Europe.
In 2022 as an entire, the FAO Dairy Worth Index averaged 142.5 factors, up 23.3 factors from 2021, and recorded the best annual common on file since 1990.
The FAO Cereal Worth Index additionally dropped in December by 1.9% from November as ongoing harvests within the southern hemisphere boosted wheat exportable provides and robust competitors from Brazil drove down world maize costs.
Over 2022 as an entire, the FAO Cereal Worth Index hit a brand new file excessive of 154.7 factors, which was a rise of 23.5 factors on 2021.
The FAO report highlighted that the value index soared due to a “host of things” together with “important market disruptions, elevated uncertainties, greater power and enter prices, adversarial climate in just a few key suppliers, and continued strond world meals demand”.
In response to FAO chief economist Maximo Torero, though the index of world meals costs declined for the ninth month in a row throughout December, the general index for 2022 confirmed an increase in worldwide costs of generally traded meals commodities.
“Calmer meals commodity costs are welcome after two very unstable years,” the chief economist mentioned.
“It is very important stay vigilant and preserve a robust concentrate on mitigating world meals insecurity provided that world meals costs stay at elevated ranges, with many staples close to file highs, and with costs of rice rising, and nonetheless many dangers related to future provides.”