The United Nations Food Price Index stood at 127 points in December, down 0.6 points from its November level – a 0.5% decrease between the two months.
Price drops in sugar, dairy products, vegetable oils and cereals offset the increases seen in meat.
The Food Price Index was 6.7% above its corresponding level one year ago, but it remained 20.7% below the peak reached in March 2022.
For 2024 overall, the index was 2.1% lower than the average value compared to last year.
Cereal and rice
Looking at specific categories, the FAO cereal price index averaged 111.3 points in December 2024. This remained steady from November’s level and 9.3% lower compared to a year ago.
Wheat export prices remained overall stable last month. Downward pressure from subdued international demand and higher seasonal availability from harvests in Argentina and Australia was balanced by upward pressure from poor winter crop conditions in the Russian Federation.
World maize prices saw a slight climb as the US saw tighter supplies and export sales grow, alongside strong demand for Ukrainian origins.
Among other coarse grains, world barley prices rose while sorghum fell.
The overall FAO cereal price index saw a 13.3% drop in 2024.
Meanwhile, the FAO All Rice Price Index declined by 1.2% in December, reflecting falls in quotations of Indica and fragrant rice driven by a slowdown in demand. Looking at the year as a whole, rice grew 0.8% - a 16-year high, albeit an incremental uptick.
Indica quotations drove the annual increase, as strong import demand from some countries in Asia and reduced competition among exporters kept them elevated during the first 9 months of 2024.
Vegetable oil
The FAO Vegetable Oil Price Index averaged 163.3 points in December, down 0.5% month-on-month, but remaining higher (+33.5%) compared to the same period a year ago.
The marginal decrease can be attributed to lower soy, rapeseed and sunflower oil prices, which offset slightly higher palm oil prices.
In December 2024, international palm oil quotations on average increased by 2% from the previous month, largely driven by protracted tight supplies in leading producing countries in Southeast Asia.
In contrast, world soyoil prices witnessed a moderate decline, underpinned by prospects of ample global supplies and somewhat weaker demand in the States. Meanwhile, world rapeseed and sunflower oil prices declined due to contraction in demand.
Overall, the 2024 FAO Vegetable Oil Price Index stood at 138.2 points, up by 9.4% from the previous year.
Meat
Meat averaged 119 points in December 2024, a climb of 0.4% from November after three months of consecutive declines.
But, compared to December 2023, the index was 7.1% higher, driven primarily by more expensive bovine meat prices. This was a result of strong global demand coupled with production constraints, including routine end-of-year maintenance shutdowns at processing plants in major exporting countries.
Likewise, international ovine meat prices rose, underpinned by reduced slaughter availability in Australia following improved pasture conditions from recent rainfall, which encouraged higher livestock retention, combined with sustained global demand.
By contrast, pig meat prices dropped, underscored by weak demand in the EU ahead of the winter festivities.
Poultry meat prices saw a slight decline due to ample export supplies from Brazil.
In 2024 as a whole, the FAO Meat Price Index averaged 117.2 points, up 2.7% from 2023. This was encouraged by robust import demand from key meat-importing countries, amid slower global production growth.
Dairy
Dairy prices averaged 138.9 points last month – a fall of 0.7% from November, marking the first drop in seven months. Still, the category remained 17% higher compared to the same period a year ago.
International quotations for butter registered the largest decline, ending a 14-month streak of increases, due to deflated global demand and accumulated stocks.
Similarly, world cheese and skim milk powder prices reduced, driven by a weaker international demand.
By contrast, international whole milk powder quotations surged, as Oceania saw price increases as a result of solid global demand, particularly in Asia. This was coupled with tighter inventories in Western Europe due to seasonally low milk production.
Overall, the 2024 FAO Dairy Price Index averaged 129.6 points, up 4.7% from 2023.
Sugar
The sugar price index dropped 5.1% between November and December 2024, averaging 120 points in the latter month. This represented a second consecutive decline and a 10.6% drop from December 2023.
The decrease in world sugar prices was driven by larger than expected sugar production in Brazil in the second half of November and the weakening of the Brazilian real against the United States dollar.
In addition, improving prospects for the sugarcane crops to be harvested from April 2025 in Brazil and the ongoing crushing season in India and Thailand, where mills are fully operational, also contributed to the decline in world sugar prices.
Overall, the United National index for sugar averaged 125.8 points in 2024, down 13.2% from 2023.
