Author: News Desk

Food commodity prices across the World made a significant leap in March to reach the highest-ever levels, as war in the Black Sea region spread shocks through markets for staple grains and vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) reported.

The FAO Food Price Index averaged 159.3 points in March, up 12.6 percent from February when it had already reached its highest level since its inception in 1990. The Index tracks monthly changes in the international prices of a basket of commonly-traded food commodities. The latest level of the index was 33.6 percent higher than in March 2021.

The FAO Cereal Price Index was 17.1 percent higher in March than in February, driven by large rises in wheat and all coarse grain prices largely as a result of the war in Ukraine. The Russian Federation and Ukraine, combined, accounted for around 30 percent and 20 percent of global wheat and maize exports, respectively, over the past three years. World wheat prices soared by 19.7 percent during the month, exacerbated by concerns over crop conditions in the United States of America. Meanwhile, maize prices posted a 19.1 percent month-on-month increase, hitting a record high along with those of barley and sorghum. Contrasting trends across the various origins and qualities kept the March value of FAO’s Rice Price Index little changed from February, and thus still 10 percent below its level of a year earlier.

The FAO VEGETABLE OIL PRICE INDEX rose 23.2 percent, driven by higher quotations for sunflower seed oil, of which Ukraine is the world’s leading exporter. Palm, soy and rapeseed oil prices also rose markedly as a result of the higher sunflower seed oil prices and the rising crude oil prices, with soy oil prices further underpinned by concerns over reduced exports by South America.

The FAO SUGAR PRICE INDEX rose 6.7 percent from February, reversing recent declines to reach a level more than 20 percent higher than in March 2021. Higher crude oil prices were a driving factor, along with currency appreciation of the Brazilian Real, while favorable production prospects in India prevented larger monthly price increases.

The FAO MEAT PRICE INDEX increased by 4.8 percent in March to reach an all-time high, led by surging pig meat prices related to a shortfall of slaughter pigs in Western Europe. International poultry prices also firmed in step with reduced supplies from leading exporting countries following avian flu outbreaks.

The FAO DAIRY PRICE INDEX rose 2.6 percent and was 23.6 percent higher than in March 2021, as quotations for butter and milk powders rose steeply amid a surge in import demand for near and long-term deliveries, especially from Asian markets.

FORECASTS FOR CEREALS

FAO also released its new Cereal Supply and Demand Brief, which includes a forecast for global wheat production in 2022 of 784 million tonnes, a 1.1 percent increase from 2021. That estimate factors in expectations that at least 20 percent of Ukraine’s planted area to winter crops, notably winter wheat, may not be harvested due to direct destruction, constrained access or a lack of resources to harvest crops, reports from Russia of continued conducive weather conditions, as well as prospective production trends in China, the European Union, India, North America and elsewhere. Coarse grain production prospects remain favorable in Argentina, Brazil and South Africa.

The 1 Billion Meals initiative, which aims to provide food support to the underprivileged and undernourished in 50 countries around the world, announced that it has started distributing foodstuffs, food parcels in Lebanon, India, Jordan, Tajikistan and Kyrgyzstan.

The initiative, which was launched at the beginning of the Holy Month of Ramadan and organized by the Mohammed bin Rashid Al Maktoum Global Initiatives (MBRGI), has started distribution in the four countries in cooperation with the Food Banking Regional Network (FBRN), the Mohammed bin Rashid Al Maktoum Humanitarian and Charity Establishment (MBRCH).

The FBRN has started distributing long-term food items and food parcels with storable ingredients to the beneficiaries of the 1 Billion Meals initiative. Whereas MBRCH is distributing food parcels containing basic staples such as flour, rice, oil, sugar and dates to beneficiaries.

Accurate Databases

The 1 Billion Meals initiative provides beneficiaries with basic necessities needed for the preparation of nutritious meals or instant electronic vouchers for food supplies in cooperation with relevant local authorities in beneficiary countries. This coordination ensures the efficiency of distribution operations and, by taking advantage of technology applications, also provides direct access to the communities most in need based on comprehensive and accurate databases.

Donations Continue

The distribution of food parcels coincides with the arrival of contributions and donations to the 1 Billion Meals initiative from individuals, institutions, companies, businessmen and pioneers of charity and humanitarian work. These donations embody the values of the UAE and its generous society, which is keen to express solidarity with those in need without discrimination between race, religion or geographical region.

The launch of the 1 Billion Meals initiative and the start of its distribution operations are part of the message of MBRGI, whose humanitarian goals are based on giving without any exception on the basis of gender, race, belief or region. The initiative falls under the pillar of Humanitarian Aid and Relief, one of the five main themes focused on by MBRGI.