Global food prices surge for three consecutive months in May

By Joy Baba-Yesufu

Global food prices rose for a third consecutive month in May, as higher cereals and dairy product prices outweighed decreases in sugar and vegetable oil prices, the Food and Agricultural Organisation (FAO) said over the weekend.
The UFAO price index, which tracks changes in the international prices of a set of globally traded food commodities, averaged 120.4 points in May, up 0.9 percent from its revised April level.
The combined average prices of cereal and dairy products drove global food prices by 122 points in the period under review.
Cereal prices increased the most to 119 points in May from 112 points in April, indicating a 6.3 percent rise on a month-on-month basis. However, it declined 8.2 percent from its value a year ago (129 points).
According to FAO, the sharp monthly rise in cereal prices was due to growing concerns about unfavourable crop conditions for the 2024 harvests, which affected crop yields in parts of Europe, Northern America and the Black Sea region.
Also, the international agency said damage to the Black Sea shipping infrastructure exacerbated the upward pressure on prices.
“Maize export prices also increased in May, reflecting production concerns in both Argentina (due to crop damage from the spread of Spiroplasma disease) and Brazil,” it said.
Moreover, spilling effects from global wheat markets also affected maize prices, while the prices of barley and sorghum – two cereal products, also rose in the period under review.
The dairy price index, another key driver of May global food prices, plunged 1.8 percent to 126 points in May from 124 points recorded in April. It increased 3.5 percent above its value in the corresponding period of 2023.
“International price quotations for all the dairy products represented in the index rose in May,” the FAO said.
It noted that increased demand from the retail and food services sector increased dairy price quotations as milk production fell below historic levels in Western Europe.
The FAO’s sugar price index declined 7.5 percent to 117 points in May from 127 points in April. This represents the third consecutive monthly decline, with the index down 25.5 percent (40 points) from its value last year and standing at its lowest level since January 2023.