According to the Food and Agriculture Organization of the United Nations’ (FAO) latest report in March 2015 food prices has shown a 1.5% drop from the previous month and an 18.7% drop from March 2014. Overall, except for a pause in October 2014, the prices have been falling steadily since April 2014, on account of large global supplies.
Sugar prices dropped significantly (-9.2%) in March. More modest declines are recorded by vegetable oils (-3.1%), cereals (-1.1%) and meat (-1%), whereas the prices of dairy products rose (1.7%) for the second consecutive month. In March 2015 the most significant price drops from March 2014 are shown in dairy products (-32%), followed by sugar and vegetable oils (both -26%), cereals (-19%) and meat (-5%).
The global food prices’ tendency to drop might last in the future in case the FAO’ s forecast for world cereal production are improved monthly. FAO has raised its 2014 world cereal production forecast by 2 million tons to 2,544 million tons. This is mainly thanks to a larger than anticipated maize harvest in the EU. At this level, global cereal output in 2014 would outstrip the 2013 record by 1%.