In 2023, global food commodity prices have returned to 2021 levels after reaching unprecedented highs in 2022 due to the war in Ukraine and lingering effects of the COVID-19 pandemic.
Key points:
Food price peak: The FAO Food Price Index reached a peak in March 2022 due to the war in Ukraine disrupting grain and oil exports.
Return to 2021 levels: In April 2024, the index stood at 119.1 points, indicating a 19% increase compared to the 2014-2016 base period but significantly lower than the 2022 peak.
Pandemic impact: Food prices had already been rising in 2021 due to supply chain disruptions and harvest setbacks caused by the pandemic.
Ukraine's role: The war in Ukraine had a significant impact on cereal and oil prices, as the region is a major global supplier of these commodities.
Recovery: The resumption of Ukrainian food exports through the Black Sea Grain Initiative and alternative routes has helped stabilize prices.
Overall, the decline in global food commodity prices is a positive development for food security, but challenges remain due to inflation and other factors affecting food prices at the consumer level.
Comments