A strategic expert from the United Nations Food and Agriculture Organization “FAO” analyzes for “Economy Sky News Arabia” what lies behind this increase, which he describes as “slight”, and the relationship between the rise in the price of sugar, in particular for the production of biofuels, expected in the coming weeks.
According to what was published by the “FAO” on its website, its food price index averaged 127.2 points in April 2023, an increase of 0.8 points, or 0.6% compared to compared to its March level.
The food price index stood at 31.2 points, or 19.7% below its level for the same period last year.
The FAO Food Price Index is used to measure the monthly change in international prices of a basket of basic food products. It consists of the average price indices of 5 commodity groups, weighted by the export share of each group during the period 2014-2016. .
slight increase
Nader Noureddine, Professor of Water and Land at Cairo University and Strategic Expert at FAO, comments on the above figures saying:
The rise in food prices is “slight”, above 0.6%, only for the general food index; i.e. household expenditure on total food products. Despite the increase, it is still lower than the same month of April last year by 19.6%. Food prices have increased in general due to higher sugar prices to expand its use in biofuel production, in addition to lower production in India and Thailand this year, then a slight increase meat and dairy prices. Prices are expected to increase again due to Russia’s recent announcement that it will not renew the grain export agreement across the Black Sea; Because she believes that the agreement was in favor of Ukraine only, while she did not benefit from it given the fact that the countries that signed sanctions against her did not allow her to export fertilizers, nor that Russian banks receive funds from his grain sales, and therefore he sells on credit and does not receive the price for what he sells.
Moscow is threatening not to renew the grain export deal, which is due to expire on May 18, if its conditions are not met.
Prices for sugar, meat and poultry
According to the FAO index, sugar prices rose 149.4 points in April, up 22.4 points or 17.6% from March, the fourth consecutive monthly increase and the highest level on record since October 2011.
The significant increase in prices is mainly due to growing concerns about lower quantities available globally in the 2022/2023 season due to lower production in India, China, Thailand and the Union European.
Likewise, the slowness of the sugar cane harvesting process in Brazil due to the rains reinforces the price increase.
For meat, the FAO index averaged 114.5 points in April, up 1.5 points, or 1.3%, from March and 7.4 points, or 6.1%, below its level for the same period last year.
As for poultry meat prices, they have risen again after 9 months of continuous decline, in line with the strong demand for imports from Asia and the continued restrictions on supply following the influenza epidemic avian in several regions.
As for beef prices, the increase came after a decline in the number of cows for slaughter, particularly in the United States, while lamb meat prices remained largely stable. due to the high quantities available for export from Australia and other neighboring countries almost identical to the increase in imports from Asia and Middle Eastern countries.
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