In the latest findings from the Food and Agriculture Organization (FAO), March 2024 brought a blend of fluctuations in global food prices, painting a diverse picture across various sectors.

March saw the FAO Food Price Index (FFPI) rise to 118.3 points, marking a modest 1.1 percent increase from the previous month. This uptick was driven by a surge in vegetable oils, dairy products, and meat prices, offsetting declines in sugar and cereals. Despite this monthly rise, the index remained down by 7.7 percent compared to the same period last year.

In the cereal market, March witnessed the FAO Cereal Price Index dip to 110.8 points, a 2.6 percent decrease from February and a notable 20.0 percent drop from March 2023. Wheat export prices continued their downward trend, while maize export prices saw a slight uptick, fueled by demand from China amidst logistical challenges in key producing regions.

Meanwhile, the FAO Vegetable Oil Price Index surged to 130.6 points in March, hitting a one-year high with an 8.0 percent increase from February. This spike was fueled by a rally in palm, soy, sunflower, and rapeseed oils, attributed to factors like reduced outputs in major producing countries and robust biofuel sector demand.

Dairy prices continued their upward trajectory, with the FAO Dairy Price Index climbing to 124.2 points, up 2.9 percent from February. Cheese and butter prices led the charge, driven by steady import demand and tightened stocks in Europe, though whole milk powder prices softened due to global demand easing despite reduced Oceania production.

In the meat sector, the FAO Meat Price Index rose by 1.7 percent in March, propelled by increases in poultry and pig meat prices. Bovine meat prices also saw an uptick, buoyed by heightened purchases from key importers, while ovine meat prices took a dip owing to surplus supplies.

The FAO Sugar Price Index averaged 133.1 points in March, down 5.4 percent from February but still up 4.8 percent from the previous year. The drop in sugar prices was attributed to increased production forecasts in India and improved harvests in Thailand, though concerns over dry weather in Brazil tempered the decline.

It’s also important to point out that the loftiness of sugar prices are combined with the reduced cocoa supplies to create painfully high input costs for chocolate makers and confectioners.