ITALY, Rome. The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices, weighted with the average export shares of each of the groups for 2002-2004.
The FAO Meat Price Index averaged 166.2 points in September, down marginally from its revised value for August. International prices of bovine and pig meat remained mostly stable, while those of ovine meat and poultry rose.
International prices of ovine meat increased for the fourth consecutive month, reflecting continued supply limitations from Oceania and strong import demand from Asia. Robust demand amid short-term supply constraints, notably in Brazil, also contributed to somewhat firmer poultry prices.
However, ample export availabilities in Oceania and the United States kept bovine prices under downward pressure, while new cases of African swine fever and associated import restrictions, weighed on pigmeat values.
Unlike for other commodity groups, most prices utilized in the calculation of the FAO Meat Price Index are not available when the FAO Food Price Index is computed and published; therefore, the value of the Meat Price Index for the most recent months is derived from a mixture of projected and observed prices. This can, at times, require significant revisions in the final value of the FAO Meat Price Index which could in turn influence the value of the FAO Food Price Index.