FAO World Food Price Index: A drop in sugar prices led December’s monthly decline

The FAO Food Price Index dipped slightly during December 2024 as sugar quotations took a dive. But the latest data shows an overall strong gain year-on-year.

The index averaged 127.0 points in December, which is 0.5% down from November 2024 and up 6.7% from December 2023.

It recorded 122.0 points for the whole of 2024, which is 2.1% lower than the average value in 2023, offsetting significant decreases in quotations for cereals and sugar with smaller but not insignificant increases in prices for vegetable oils, dairy and meats.

A drop in international sugar quotations

The FAO Sugar Price Index led the monthly decline, dipping by 5.1% from November amid improving sugarcane crop prospects in the main producing countries to stand 10.6% below its December 2023 level. For 2024 as a whole, the index averaged 13.2% lower than for 2023.

The FAO Cereal Price Index in December was 9.3% below its year-earlier level, driven by a slight increase in maize quotations offset a drop in those for wheat. It averaged 113.5 points for the whole of 2024 — a 13.3% decline from the 2023 level. 

The FAO All Rice Price Index edged up by 0.8% from its average 2023 level, representing a 16-year high, notes the data. 

Meanwhile, vegetable oil prices declined by 0.5% from November, though still 33.5% higher than its year-earlier level. The FAO Vegetable Oil Price Index averaged 9.4% higher than in 2023 amid tightening global supplies.

The FAO Meat Price Index increased slightly by 0.4% in December from November, ending a three-month declining trend. In 2024 the FAO Meat Price Index was 2.7% above its 2023 average, with higher quotations for bovine, ovine and poultry meats offsetting declining international prices for pig meat.

The FAO Dairy Price Index declined after seven consecutive months of increases, dipping by 0.7% from November. The FAO Dairy Price Index averaged 4.7% higher than in 2023, due mainly to surging butter prices.