Global food prices declined in June 2014, with dairy prices helping lead the way, according to the latest United Nations’ Food and Agriculture Organization (FAO) Food Price Index.
The June FAO Dairy Price Index dropped 1.0% from May, the fourth consecutive month-to-month decline. The decline in June was substantially less than in the previous three months, suggesting the downward price adjustment may be coming to an end. At the product level, large supply of milk powders continued to weigh on the market, while a firm import demand has kept cheese prices on the rise.
The FAO Food Price Index is a measure of the monthly change in international prices of a basket of five food commodities – cereal, vegetable oil, dairy, meat and sugar. Overall, the FAO Food Price Index was down 1.8% from May.
Looking at other commodities, sugar was down 0.5% from May; vegetable oils declined by 3.3%; and cereals were down 5.2%. The June 2014 FAO Meat Price Index was up, however, increasing 0.7% from May and 8.1% compared to June 2013.