A surge in the cost of most food commodities last year sent the U.N food agency average price index to the highest level on record as the disruption caused by Russian invasion of Ukraine raised concerns of shortages.
The Food and Agriculture Organisation’s (FAO) food price index, which tracks international prices of the most globally traded food commodities, averaged 132.4 points last month compared with a revised 135.00 points for November.
For 2022 as a whole, the benchmark index averaged 143.7 points, up 18 points or 14.3% from 2021, and the highest since records started in 1990.
The index fell in December due to a sharp drop in the international price of vegetable oils, as well as some drops in cereal and meat prices, but was offset by minor increases in sugar and dairy prices, according to the FAO.
Fears of delays to Black Sea trade drove up food prices following Russia’s invasion of Ukraine in February last year. They have lost ground in part due to a UN-backed grain export route from Ukraine.
According to the FAO, food import costs in 2022 will force the poorest countries to reduce shipped quantity.
Its food price index is the average of its meat, dairy, cereals, vegetable oils, and sugar price indices for 2014-2016, weighted to each group’s average export proportion.
Reacting to the development, FAO chief economist Maximo Torero said it is important to “remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels.”
Mr Torero cautioned that several essentials are at or near record high costs, with rice prices rising and other dangers related to future supplies.
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