The price of food has dropped worldwide to an all-time, five year low, the UN agricultural agency reported.
The Food and Agriculture Organisation’s (FAO) price index — which measures monthly changes in the global price of a basket of meat, dairy, cereals, oils and fats, and sugar — averaged 196.6 points last month which is a 7.3 point (3.6 per cent) decrease compared to July. With the exception of meats, prices for all of the commodities measured by the index dipped significently.
According to a statement to the press, FAO’s sub-index for dairy products averaged 200.8 points in August, down 25.3 points (11.2 per cent) versus July and 46.8 points (18.9 per cent) compared to a year ago- the result of abundant supplies for export coupled with reduced import demand.
Russia’s prohibition at the beginning of the month on imports of dairy products from several countries helped depress prices, while slackening imports of whole milk powder by China (the world’s largest importer) also contributed to market uncertainty.
