The Food and Agriculture Organisaiton (FAO) has disclosed that food prices dropped in the month of December 2015 due to dwindling global economic downturn, reports NaijaAgroNet.
FAO also said that abundant supplies and slow economic growth drive food prices down for the fourth consecutive year.
FAO's Food Price Index sighted by NaijaAgroNet showed that prices of major food commodities declined for the fourth year in a row in 2015, averaging 19.1 percent below their previous-year's levels, as the dwindling global economy also triggered sharp price falls from metals to energy markets, ending the year even lower, at 154.1 points during the month of December.
In December, FAO said, the index declined a further 1.0 per cent from its revised November value, as falling prices for meat, dairy and cereals more than offset gains by sugar and vegetable oils.
"Abundant supplies in the face of a timid world demand and an appreciating dollar are the main reason for the general weakness that dominated food prices in 2015," said FAO senior economist Abdolreza Abbassian.
The FAO Food Price Index is a trade-weighted index tracking international market prices for five key food commodity groups: major cereals, vegetable oils, dairy, meat and sugar.
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