Global food prices stable in January 2013 – FAO

Food prices have been stable globally as the UN food agency says its January 2013 price index remained unchanged.

The Food and Agriculture Organisation (FAO) reported February 7, 2013 that the Food Price Index held steady at 210 points in January 2013 after three straight months of decline.

The Index is a measure of the monthly change in the international prices of a basket of food commodities.

Increases in oils and fats prices offset lower cereals and sugar quotations while dairy and meat values remained substantially unchanged, according the FAO.

“Given the tight supply situation, the weather remains an important determinant of prices. For several cereals, production needs to increase significantly this year in order to avoid unexpected price surges,” said FAO Senior Grains Economist Abdolreza Abbassian.

The Cereal Price Index dropped 1.%, or nearly three points, to 247 points in January while prices for oils/fats averaged 205 in January, up 4.4%, or 9 points, from December, reversing declines in the last four months. Both dairy and meat prices averaged 198 and 176 respectively in January 2013, according to the FAO

The FAO Sugar Price Index averaged 268 in January, down 2.2%, or 6 points, from December, the Rome-based agency indicated.

By Ekow Quandzie