Rome, Jan 4, (V7N) – Global food prices fell by 2.1 percent in 2024 compared to the previous year, driven largely by declines in cereal and sugar prices, according to the United Nations Food and Agriculture Organization (FAO) report released on Friday.

The FAO Food Price Index averaged 122 points for 2024, 2.6 points lower than the 2023 average.

Despite a steady upward trend in dairy, meat, and vegetable oil prices throughout 2024, these gains were not enough to counterbalance the sharp declines in cereal and sugar prices. The FAO Cereal Price Index dropped by 13.3 percent, while the Sugar Price Index saw a year-on-year decrease of 13.2 percent.

CEREALS AND SUGAR DRIVE DECLINE

The FAO attributed the drop in cereal prices to lower wheat and coarse grain costs. Meanwhile, sugar prices saw a significant dip due to strong production levels in major exporting countries.

DECEMBER SNAPSHOT

For December 2024, the FAO Food Price Index averaged 127 points, marking a month-on-month decrease of 0.5 percent but reflecting a 6.7 percent rise compared to December 2023.

This trend underscores the volatility in global food markets as regions grapple with varying economic and climate challenges, FAO analysts noted.

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