News

Food prices lowest in six years

The United Nations Food and Agriculture Organization (FAO) reports food prices have dropped to a six year low. The July food price index accredits declines in dairy products and vegetable oils for the dip. Increases were seen in prices of sugar and cereal, while meat remained steady.

The index tracks international price averages of five commodity groups monthly.

Strong wheat and corn prices helped the Cereal Index rise 2 percent in July, but the index remains 10 percent below last year.

Favorable supplies of palm and soy oil weighed on the Vegetable Oil Index, which declined 5.5 percent, dropping to its lowest price in six years.

Declining dairy markets, increased EU milk production and limited import demand caused the Dairy Index to fall slightly more than 7 percent from June.

The Meat Index remains unchanged as increasing prices of beef offset declines in pork and lamb. Poultry prices were stable.

The largest increase was seen on the Sugar Index, up 2.5 percent from June. FAO says Brazil’s sugarcane harvest was less than ideal and much of the crop is being used for ethanol instead of sugar.

The overall index for July is 164.6, down almost 20 percent last year and the record-high of 229.9 set in 2011.