The Ministry of Agriculture, Food and Rural Affairs announced on the 3rd that the World Food Price Index, released by the United Nations Food and Agriculture Organization (FAO), rose by 1.0% to 128.3 last month compared to the previous month. This index compares the current prices with the average prices from 2014 to 2016, set at 100, and has been rising every month so far this year. Compared to a year ago, it has increased by 7.6%.
By item group, the meat price index increased by 3.2% to 121.6 compared to last month. Germany's acquisition of disease-free status led to the lifting of export restrictions, and the increase in demand from the European Union (EU) appears to have affected the rise in pork prices. The seasonal surge in demand related to the Easter holiday also contributed to the price increase.
Beef prices rose in Australia and Brazil due to limited international supply. Poultry prices increased as the volume available for export decreased.
The dairy price index rose by 2.4% to 152.1 compared to last month. Butter prices increased due to a decrease in stock. Cheese became more expensive as supplies from Oceania decreased. The price of powdered milk increased due to the strengthening of the euro diminishing the competitiveness of European products, while demand shifted to Oceania amid seasonal reductions in milk production in that region.
The grain price index is at 111.0, up 1.2% from last month. Wheat prices saw a slight increase due to reduced export volumes from Russia. Corn prices rose due to a lack of inventory in the United States and adjustments in tariff policy. Rice prices increased owing to heightened demand for fragrant varieties and reduced harvests in Vietnam.
On the other hand, the sugar price index dropped by 3.5% to 112.8 compared to last month. Sugar production in Brazil increased, but the depreciation of the Brazilian currency led to a decline in prices. Furthermore, growing uncertainties in the international economic outlook raised concerns about the demand for beverages and processed foods, which likely contributed to the drop in sugar prices.
The price of oils and fats decreased by 2.3% to 158.0 compared to last month. Prices for palm oil fell due to seasonal production increases in major Southeast Asian producers, but prices for soybean oil and canola oil rose.