The Food and Agriculture Organization (FAO) Food Price Index has continued to decline in March by1.5 per cent from February and 18.7 percent (40 points) below its level a year earlier, NaijaAgroNet reports.
The FAO food price is a trade-weighted index that tracks prices of five major food commodity groups on international markets, namely cereals, meat, dairy products, vegetable oils and sugar.
NaijaAgroNet also reports that a sharp fall in the price index for sugar which reached its lowest level since February 2009 together with dipping prices for vegetable oils, cereals and meat, more than offset a rise in dairy prices and contributed to the lower index, which in March averaged 173.8 points.
The index, NaijaAgroNet gathered has been on a downward path since April 2014.
The FAO noted that the Sugar Price Index averaged 187.9 points in March, down a sharp 9.2 percent from February. Stressing this was mainly due to improved crop prospects but also the continued weakening of the Brazilian currency against the US dollar, which is supportive to exports, NaijaAgroNet learnt.
The cereal output estimate for 2014, on other hand, rose to 2 544 million tonnes mainly due to a larger than anticipated maize harvest in the European Union, which confirmed that the global cereal output in 2014 would outstrip the 2013 record by 1 per cent.
Cyriacus Nnaji/ GEE
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