A third consecutive fall in global food prices during the month of July was largely driven by lower international prices for grains, soy and palm oil, according to the United Nations Food and Agriculture Organization (FAO).
The UN agency's Food Price Index averaged 205.9 points in July 201, a fall of around 2% on June 2013 and 3.3% lower than the same period last year. The data suggests that the fall in prices has been primarily driven by lower prices for grains, soy and palm oil, but added that sugar, meat and dairy quotations were also down from June 2013.
The FAO report noted smaller drops for prices in dairy (1.1% drop for the month) and sugar (1.5% drop), bigger drops for oils and fats (3.3% drop) and cereals (3.7% drop) while prices for meat remained more or less unchanged from June values.
In the meat sector, the UN agency said that prices for poultry and pig meat were lower, while those of bovine and ovine meat rose. Overall, there are signs that international prices for meat are weakening in the face of reduced import demand - especially from Asian countries - reflecting production growth and, in some cases, a build-up of domestically produced meat inventories, said the FAO.
Source: The United Nations Food and Agriculture Organization (FAO)