Weather and Black Sea tensions push prices to 10-month highs
3 April 2014, Rome – The FAO Food Price Index rose sharply in March, up 4.8 points, or 2.3 percent, to an average of 212.8. This is the highest level since May 2013. According to FAO, the Index was influenced, as expected, by unfavourable weather conditions in the US and Brazil and geopolitical tensions in the Black Sea region. These and other influences are reviewed in greater detail in the AMIS Market Monitor report, the monthly synopsis of the major food crops prepared by the G-20 Agricultural Market Information System hosted at FAO headquarters in Rome. The Index, based on the prices of a basket of internationally-traded food commodities, saw prices increase in all groups except dairy, which fell for the first time in four months (-2.5 percent). The greatest gains were seen in sugar (+7.9 percent) and cereals (+5.2 percent).
Michael Griffin is FAO’s dairy and livestock market expert. In the following interview he explains this month’s Food Price Index and elaborates on the decline in dairy prices.
Produced by: Sandra Ferrari