FAO FPI Lowest Point Since 2010

The Food Price Index (FPI) published by the Food and Agriculture Organization (FAO) fell for the sixth month in a row in September 2014 averaging 191.5 points down 5.2 points from August and 12.2 points from the same time last year. The fall means that the index has now reached its lowest point since August 2010 and makes it the longest continuous period of falls since the 1990s. The five commodity groups that make up the FPI basket showed different degrees and directions of change with sugar and dairy the main contributors to the fall followed by cereals and oils, while meat remained firm.

World Food Prices Down For Second Month

The FAO Food Price Index fell for the second consecutive month in May 2014 to an average of 207.8, down 2.5 points (1.2%) from April and 7 points (3.2%) from May 2013. March saw the index rise to a ten month high of 213 points but it fell away again in May due to price pressures from the dairy, cereal and vegetable oil sectors. Sugar increased and meat remained stable.

FAO FPI Continues To Fall

The FAO Food Price Index (FPI) continued to fall in September as the index averaged 199.1 points, 2.3 points below the August average and 11 points on the beginning of the year. The index has fallen now for 5 consecutive months. The fall was driven by a sharp fall in the international price of cereals. The prices of all the other components of the index rose namely dairy, oils, meat and sugar.

World Food Prices Still Much Higher Than Last Year

The FAO Food Price Index averaged 211.3 in June nearly 2 points below its revised May value but still almost 11 points above the figure for June Last year. The slight decline reflects lower sugar and dairy prices and slightly less severe price decreases in cereals and oils. Meat prices went up 2% in June.

FPI Steady At 215

The FAO Food Price Index for May 2013 remained around 215 but averaged slightly below the April value of 215.8 at 215.2 points. It was fully 10 points higher than in May last year. It is also nearly 10% below the February 2011 peak.

Cereals increased in price in May up 4 points to 238.9 and almost 17 points, or 7.8%, above Last May. A strong recovery in maize prices was the main contributor. Wheat and rice were largely unchanged. Oils and fats were unchanged. The increases in cereals prices were offset by falls in the dairy and sugar indices. The Dairy Price Index fell by 9 points to 249.8 in May. April had seen exceptionally high prices. The biggest fall within the Dairy Price Index was in skimmed milk powder. Sugar prices responded to good harvesting conditions in Brazil and the generally abundant supply of sugar globally. Meat prices in May remained about the same as in April.

World Food Prices Lower In November

The FAO Food Price Index for November was down 3 points on October and is its lowest since June 2012. Prices of all commodity groups except dairy came down in November. Sugar showed the sharpest decline followed by oils and cereals. The index for November this year is nearly 3% below the index for the same time last year.

FPI Remains The Same In October

The Food Price Index of the Food and Agriculture Organisation (FAO) was unchanged at 213.5 between September and October 2012. The Meat Price Index increased 0.1 to 174.3 and there were also increases in the Dairy and Sugar Prices Indices. There were decreases in the Cereals and Oils Prices Indices. These five components combined give the overall Food Price Index.

Fall In Global Food Prices In April

Global food prices fell by over 4 points in April according to the monthly Food Price Index (FPI) of the Food and Agriculture Organisation (FAO). The FAO index of 213.9 compares with the index of 217 for March 2012. The main components of the index all fell in price with the exception of the Meat Price Index which increased by 0.9 points. The price indices of the dairy, cereals, oils and sugar sectors all fell in April. The index had risen month on month since November 2011. Prices are still much lower than the same month last year when the index was at 234.9.

Global Food Prices Remain Fairly Stable In November

The FAO Food Price Index fell slightly again in November 2011 with the average at 215 compared with 216 in October. There has been a downward trend in global food prices since February 2011. The annual food price index increased sharply in 2011 to 229 from the 185.3 of the previous year. They are the highest since at least 1990. The overall food price index reflects increases in the price indices of the commodity groups that make up the index. The prices for sugar, oils, and cereals reported sharp increases. Food is a volatile sector for prices.

Small-Scale Dairying Can Be A Way Out Of Poverty

Poverty reduction, increased nutrition levels and an improvement in livelihoods could be the result of an increase in the competitiveness of small-scale dairy farms according to a study by the FAO's Animal Production and Health Division and the International Farm Comparison Network. It could help meet the demands of local and global markets and the Millenium Develoment Goal of eradicating hunger and poverty.

The study entitled 'The Status and Prospects for Smallholder Milk Production' estimates that there are about 150 million small dairy farming households equalling around 750 million people in milk production and the majority are in developing countries. The average dairy herd is about 2 cows yielding about 11 litres per farm per day. There are 6bn consumers of milk and milk products the majority in developing countries. The low production costs of the smaller dairies means they have the potential to compete with much larger capital intensive dairy systems even in the developed world. Opportunities exist where populations and wages are increasing and where there are higher market prices.

The report also said that better management practices with herd expansion and increased yields could improve productivity and poverty reduction. The opportunities will only be realised if the threats facing the sector are properly addressed. Enterprise, marketing and management skills are lacking in some places and credit is limited.

Trade liberalisation leaves small-scale dairy farmers open to competition from large-scale corporates able to resond to market changes more easily. Farmers in South Asia and Africa also leave a bigger carbon footprint than farmers in Europe and America. It could be reduced by better animal feeding systems.

Value creation at every stage in the production and marketing chain must be part of the every strategy if consumers are to get more for their money.