Agricultural products on the world market became more expensive again in August. This marks the third consecutive increase in global market prices for key agricultural products.
As announced by the Food and Agriculture Organization of the United Nations (FAO) in Rome, its price index for all product groups rose by 2% compared to July.
The devaluation of the dollar was one factor involved. Especially, the FAO sub-index for sugar rose by 6.7% in August. Poor harvest prospects in the European Union and Thailand due to weather conditions, combined with strong demand for sugar on the world market driven by China, stimulated the sugar market. The FAO price index for vegetable oils increased month-on-month by 5.9% to 98.7 points; the highest level since January.
The grain price index rose by 1.9% in August to 98.7 points. According to FAO experts, it was mainly sorghum, barley, maize, and rice that increased in price. In contrast, the sub-index for dairy products remained steady at 102 points.
According to the experts, cheese and whole milk powder became cheaper. On the other hand, butter prices rose as Europe exported fewer goods due to strong domestic demand. Additionally, cows in the EU produced less milk because of the heat.
The FAO index for global meat prices also barely moved, standing at 93.2 points in monthly comparison. According to experts in Rome, prices for poultry, sheep, and beef declined due to weakening global import demand. Conversely, pork became more expensive, partly due to strong purchases by China on the world market.