FAO Food Price Index falls despite climbing dairy prices
6 February 2014, Rome - The FAO Food Price Index fell in January for the first time in 3 months as lower prices of cereals, sugars, oils and meat outstripped gains in dairy values. The Index, based on the prices of internationally-traded food commodities, averaged 203.4 points in January 2014. The numbers are down 1.3 percent from December and 4.4 percent below January last year. “We’re seeing lower prices due to abundant supplies, but stronger upturn in demand, such as an increase in the pace of imports from Asia, could limit the decline,” said FAO economist Abdolreza Abbassian. A notable exception in the Food Price Index for January, however, is a rise in dairy prices. According to FAO’s dairy and livestock market specialist, the FAO dairy price index registered a 1.3 percent increase in January to 267.7 points.
Michael Griffin is FAO’s dairy and livestock market expert. In the following interview he explains what this overall drop in prices means and what the status of dairy global prices tells us about dairy commodities.
Produced by: Sandra Ferrari