FAO Index: Meat prices rise to record high
FAO Index

Meat prices rise to record high

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Poultry meat - like turkey here - is not available in abundance on the world market, partly because of avian influenza outbreaks in key producing countries.
Poultry meat - like turkey here - is not available in abundance on the world market, partly because of avian influenza outbreaks in key producing countries.

ITALY, Rome. Despite an easing in some foodstuffs, world market prices remain at a high level. Poultry meat became significantly more expensive.

The United Nations Food and Agriculture Organization's (FAO) Agricultural Price Index for April 2022 edged down from its record set in March. FAO said the index declined 0.8 % in April from the previous month to 158.5 points. However, it still exceeded the year-earlier figure by 29.8 %.

Cereals and vegetable oils cheaper

The main contributor to the decline was the trend in vegetable oils, whose sub-index fell 5.7% month-on-month in April. According to the FAO, palm, sunflower and soybean oils in particular fell in price, which more than offset rising rapeseed oil prices. Experts in Rome recorded a smaller drop for their cereal price index, down 0.4% from the previous month. This was mainly triggered by price pressure for corn in the wake of increasing supplies from the beginning harvests in Argentina and Brazil, they said. In contrast, international wheat quotations held up well, they said, partly because of continued tight supplies of Black Sea commodities due to the war.

A monthly month-on-month gain was recorded for the sugar price index in April for the second month in a row, now at 3.3%. The reasons cited were the rise in the price of ethanol in Brazil and the appreciation of the Brazilian real against the U.S. dollar. In addition, the start of the Brazilian sugar cane harvest had been delayed.

Tight supply supports poultry meat

The Meat price index April, meanwhile, rose 2.2% compared to March, reaching a new high. According to the organization, poultry meat in particular rose in price, with solid demand amid tight supplies. Pork quotations also rose, attributed to the continued low supply of slaughter pigs in Western Europe and intense domestic demand in key producing countries. Beef prices increased moderately, according to the FAO.

Butter in strong demand

The milk price index also continued to climb, up 0.9% month-on-month. This was the eighth increase in a row. The FAO cites the ongoing global supply shortage as the reason here; milk production in Western Europe and Oceania continued to miss the seasonal average. International quotations for butter had risen the most. Tight supply, particularly in Western Europe, was a key trigger, he said. In addition, demand for short-term butter supplies had increased - partly due to the current shortage of sunflower oil and margarine.

Source: fleischwirtschaft.de; AgE

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