All data is delayed
See More

Global food prices drop 7% in 2012

Jan 10 2013 14:52

Rome - Global food prices fell by 7% in 2012 from the level the previous year, the UN's Food and Agriculture Organisation said on Thursday, assuaging worries a few months ago that the world could be heading for a food crisis.

The FAO added that prices had fallen in December for the third month in a row.

The Rome-based FAO's Food Price Index averaged 212 points in 2012, a drop of 7% owing largely to falls in the prices of sugar, dairy products and oil.

According to the FAO's index, a monthly measure of changes in a basket of food commodities, prices dropped in December by 1.1% to 209 points, down for the third month from the 263 points registered in August.

"The result marks a reversal from the situation last July, when sharply rising prices prompted fears of a new food crisis," said Jomo Sundaram from FAO's Economic and Social Development Department.

"But international well as flagging demand in a stagnant international economy, helped ensure the price spike was short-lived and calmed markets so that 2012 prices ended up below the previous year’s levels," he said.

The sharpest declines registered in 2012 were sugar (17.1%), dairy products (14.5%) and oils (10.7%), while price declines were much more modest for cereals (2.4%) and meat (1.1%).

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

food prices



Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills..

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote