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Thursday, August 6, 2015

China, others cause food price crash in July---FAO

The Food and Agriculture Organization (FAO) has revealed that in July, the dairy price index dropped 7.2 per cent from the previous month, mainly due to lower import demand from China.

Other regions which contributed to the crash in prices, NaijaAgroNet gathered, include Middle East and North Africa along with abundant European Union (EU) milk production which has resulted in good availability of dairy products for export.

The FAO Food Price Index averaged 164.6 points in July, down 1.0 per cent from June, and 19.4 per cent from a year earlier. The trade-weighted index tracks prices on international markets of five major food commodity groups: cereals, meat, dairy products, vegetable oils and sugar.

The July, NaijaAgroNet reports, vegetable oil price index was some 5.5 per cent below its June level, reaching its lowest value since July 2009. The recent slide was primarily caused by a fall in international 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 on ample supplies for export in South America and a favourable outlook for global supply in 2015/16.

The cereal price index, NaijaAgroNet reports, rose by 2.0 per cent from June, but was still 10.1 per cent below July last year's 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.

In July the meat price index remained nearly unchanged from the previous month. An increase in international prices of bovine meat offset a decline for pig meat and ovine meat, while prices for poultry remained stable. The sugar price index rose by 2.5 per cent from June 2015, largely due to less than ideal harvesting conditions in the main producing region of Brazil, NaijaAgroNet learnt.

Cyriacus Nnaji/GEE

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