The FAO Food Price Index experienced a notable decrease in December, dropping by 10.1% from its November level, contributing to an overall annual reduction of 13.7% compared to the average value in 2022. This decline was influenced by decreases in the indices for meat, sugar, and vegetable oils.
Meat Price Index Trends
Focusing on the meat price index, December witnessed a 1% decrease from November and a nearly 2% drop from December 2023. The decline in international pork prices was a key factor, driven by a continued slump in import demand in Asia, despite a rise in seasonal internal sales in some exporting countries. Beef and poultry prices also fell during the month, attributed to diminishing interest from Asian buyers and an increase in supplies from major producing regions.
Ovine Meat Prices See Uptick
In contrast to the general downward trend, ovine meat prices saw a rebound after two consecutive months of decline. This recovery was spurred by stronger pre-holiday demand and a reduction in slaughter supplies in Oceania, where recent rains lessened the need to offload animals for slaughter.
2023 Meat Price Index Overview
For the year 2023, the FAO Meat Price Index averaged 114.6 points, marking a decrease of 4.2 points (3.5%) from 2022. This decline was primarily due to increased supplies from leading exporting regions and reduced import demand from key meat-importing countries. The annual average values for bovine, poultry, and ovine meats declined, although this was partially offset by a rise in average pork prices.
About the FAO Food Price Index
The FAO Food Price Index (FFPI) measures the monthly change in international prices of a basket of food commodities, including meat, dairy, vegetable oil, sugar, and cereal. It is calculated as the average of price indices for these commodities, weighted by their average export shares over 2014-2016.
This overview provides a snapshot of the recent trends in the global meat market, highlighting the fluctuations in different meat categories and their impact on the overall food price index.
