Global Food Prices Increase in July 2023—FAO

Image

By Adedapo Adesanya

The United Nations Food and Agriculture Organisation (FAO) said the price of food rose in July 2023, led by a solid rise in the vegetable oils price index, partially offset by a significant decline in the sugar price index, together with small decreases in the price indices for cereals, dairy and meat.

The FAO Food Price Index (FFPI), released on Friday, showed that food prices averaged 123.9 points in July 2023, up 1.5 points (1.3 per cent) from June but remaining 16.6 points (11.8 per cent) below its value in the corresponding month last year.

The FAO Cereal Price Index averaged 125.9 points in July, down 0.7 points (0.5 per cent) from June and 21.3 points (14.5 per cent) below its value a year ago.

The month’s slight decline stems from a fall in international coarse grain prices, which declined by 4.8 per cent from June.

International maize prices continued their downward trend due to increased seasonal supplies from ongoing harvests in Argentina and Brazil and potentially higher-than-initially-anticipated production in the United States of America, where conditions slightly improved and the planted area was revised upwards.

Among other coarse grains, world prices of sorghum declined in tandem with those of maize, while world barley prices were nearly stable, influenced by spillover effects from wheat markets.

By contrast, international wheat prices rose by 1.6 per cent, marking their first month-on-month increase in nine months, mainly driven by the uncertainty over Ukraine’s exports following the decision taken by the Russian Federation to terminate the implementation of the Black Sea Grain Initiative and the subsequent damage to Ukraine’s port infrastructure on both the Black Sea and the Danube River. Continued dry conditions in Canada and the United States of America also added pressure on prices.

The FAO All Rice Price Index increased by 2.8 per cent in July to reach its highest level since September 2011, driven mostly by price increases in the Indica market segment. In that market, India’s 20 July prohibition of non-parboiled Indica exports fostered expectations of greater sales in other origins, amplifying upward pressure already exerted on prices by seasonally tighter supplies and Asian purchases.

The FAO Vegetable Oil Price Index averaged 129.8 points in July, up 14.0 points (12.1 per cent) from June, marking the first increase after seven months of consecutive declines. This pronounced increase in July was driven by higher world quotations across sunflower, palm, soy, and rapeseed oils.

International sunflower oil prices rebounded by more than 15 per cent month-on-month, primarily underpinned by renewed uncertainties surrounding the exportable supplies out of the Black Sea region after the decision taken by the Russian Federation to terminate the implementation of the Black Sea Grain Initiative.

In the meantime, world palm oil prices also rose markedly, reflecting prospects of subdued production growth in leading producing countries.

As for soy and rapeseed oils, international prices increased on continuing concerns over the production outlooks of soybeans in the United States of America and rapeseed in Canada, respectively. Rising world crude oil quotations also lent support to vegetable oil prices.

The FAO Dairy Price Index averaged 116.3 points in July, down 0.5 points (0.4 per cent) from June, marking the seventh consecutive monthly decline, and standing 30.2 points (20.6 per cent) below its value in the same month last year.

The decline in July was led by lower quotations for skim milk powder and butter, underpinned by subsided market activities in Europe during the summer holidays and muted interest in import demand in the months ahead due to market uncertainty over the future directions of prices.

By contrast, whole milk powder prices recovered slightly, mostly influenced by exchange rate movements, notwithstanding steady production progress in New Zealand in line with seasonal trends.

Following five months of steep declines, world cheese prices recovered slightly, reflecting somewhat strengthened food services sales and the impact of hot weather on seasonally declining milk supplies in Europe.

The FAO Meat Price Index averaged 117.8 points in July, down 0.4 points (0.3 per cent) from June and remaining 6.3 points (5.1 per cent) below its corresponding month a year ago.

International bovine meat prices fell, reflecting higher export availabilities in Oceania, coinciding with subdued import demand in Asian markets amid higher inventories and sluggish internal sales.

Poultry meat prices also fell slightly due to increased supplies from leading exporters, despite the persistent impacts of the avian influenza outbreaks in major producing regions.

Meanwhile, decreases in ovine meat prices continued for the third consecutive month, reflecting high supply availabilities in Oceania and lower demand from leading importers, including China and Western Europe.

By contrast, continued tight supplies from Western Europe and the United States of America, in tandem with high seasonal demand, led pig meat prices to increase for the sixth consecutive month.

The FAO Sugar Price Index averaged 146.3 points in July, down 5.9 points (3.9 per cent) from June, marking the second consecutive monthly decline, but remaining 33.4 points (29.6 per cent) above its level in the same month last year. The good progress of the 2023/24 sugarcane harvest in Brazil, and improved rains benefiting soil moisture conditions across most growing areas in India, weighed on world sugar prices in July.

Additional downward pressure on prices was exerted by sluggish import demand from Indonesia and China, the world’s largest sugar importers. However, persistent concerns over the potential impact of the El Niño phenomenon on the 2023/24 sugarcane crops, particularly in Thailand, along with higher international crude oil prices, reined in the declines in world sugar prices.

Share
Related Stories
Image
05-February-2024

A Shifting Landscape: Is ECOWAS Awakening to Regional Economic and Security Realities?

By Kestér Kenn Klomegâh Given the multidimensional difficulties facing the the regional bloc, the Economic Community of West African States (ECOWAS), the most delicate being forging indivisible regional security which, at least, constitutes the basis for economic integration and development. The highly anticipated decision made by Burkina Faso, Mali and Niger to quit the organization poses challenges and resolving these fragile questions lead to instability. Burkina Faso, Mali and Niger have common historical and political backgrounds, as former French colonies struggled to maintain some kind of democracy and improve the economic situation for 80% impoverished population. However, the political leadership

Image
11-January-2024

ILO Forecasts Rise in Global Unemployment Rate in 2024

By Adedapo Adesanya  The International Labour Organisation (ILO) has warned that global unemployment is expected to rise in 2024, with growing inequality and stagnant productivity also a cause for concern on the economic horizon. ILO gave the warning in a statement, noting that just over five per cent of the world’s workforce is without a job, according to the World Employment and Social Outlook Trends 2024 report. This is a better situation than before the pandemic but it isn’t set to last, as an extra two million people are expected to be looking for a job over the next 12

Image
28-January-2024

Niger, Mali, Burkina Faso Leave ECOWAS

By Adedapo Adesanya The trio of Niger, Mali and Burkina Faso on Sunday announced their withdrawal from the Economic Community of West African States (ECOWAS). The West African countries are currently led by soldiers following coups that ousted the civilian leadership in the countries with Niger being the latest. Struggling with jihadist violence and poverty, the regimes have had tense ties with ECOWAS since coups took place in Niger in July 2023, Burkina Faso in 2022, and Mali in 2020. All three were suspended from ECOWAS with Niger and Mali facing heavy sanctions. According to an Associated Press report, the

More Stories
Image
22-December-2020

Smartphone Makers to Establish Assembly Plants in Nigeria

By Adedapo Adesanya The federal government has hinted that some major international smartphone manufacturers are considering establishing assembly plants in Nigeria. The Minister of State for Petroleum, Mr Timipre Sylva, said this on Monday at the graduation ceremony of 600 youths trained on GSM phone repairs, maintenance, software and hardware specialisation in Kano state. The training was a collaboration between the Nigeria Content Development and Monitoring Board (NCDMB) and Mr Nasiru Ali-Ahmed, the House of Representatives member representing Nasarawa constituency of the state. The Minister, who attended the event virtually, noted that Nigeria had the largest GSM market in the

Image
08-August-2018

Conoil Resumes Trading as NSE Lifts Suspension on Shares

By Dipo Olowookere The suspension earlier placed on the trading of Conoil shares at the stock market has now been lifted by the Nigerian Stock Exchange (NSE). This was confirmed via a statement issued by the management of the stock exchange on Wednesday morning. Authorities of the NSE had on Monday, August 6, 2018, banned trading of shares of the oil firm at the stock market over its failure to file in its financial statements. But on Tuesday, the company released its results for first quarter of 2018 and then the first six months of this year. Consequently, the stock

Image
20-April-2017

Tunde Braimoh Should Resign as Lagos Assembly Spokesman—Hon Saheed Ibile

**Says Minority Leadership Exclusion Democratic Tyranny By Modupe Gbadeyanka Founder of Ibile Peaceful Assembly, Honourable Saheed Mosadoluwa fondly called Saheed Ibile or Mr Ibile, has described the exclusion of the minority leadership in the Lagos State House of Assembly as undemocratic. Mr Ibile was reacting to an alleged recent statement credited to Chairman of the House Committee on Information, Strategy, Publicity and Security, Mr Tunde Braimoh, that the of offices of Minority Leader and Minority Whip in the Assembly were no longer necessary. The philanthropist described the alleged statement as “a troubling conundrum,” explaining that, “We are not saying majority

Image
15-October-2020

African Alliance Picks Insurance Sales Guru as MD/CEO

By Dipo Olowookere An accomplished insurance sales expert and risk manager, Mrs Joyce Ojemudia, has been selected by African Assurance Insurance Plc as its Managing Director/CEO. A statement issued by the company’s Brand, Media and Communications Manager, Mr Bankole Banjo, disclosed that the appointment of Ms Ojemudia became effective Monday, October 12, 2020, after securing the approval of the National Insurance Commission (NAICOM). She was brought to the board to help reposition the organisation for better service delivery and expand the firm’s market share in the underwriting ecosystem in Nigeria, being an experienced salesperson. Throughout her glowing career, she has

Image
12-August-2020

NASD Index Jumps to 711.00 Points After 0.70% Boost

By Adedapo Adesanya Unlisted securities admitted on the NASD Over-the-Counter (OTC) Securities Exchange pulled a 0.7 per cent appreciation to close in the positive territory on Tuesday, August 11. This signified the first gain this week as the market made no movement at the first trading session of the week on Monday. The NASD Unlisted Securities Index (NSI) moved up to 711.00 points at the close of business, rising by 0.7 per cent or 4.93 points from the prior 706.07 points. Likewise, the market capitalisation rose by N3.63 billion or 0.7 per cent to close at N522.28 billion compared to

Image
23-October-2023

States, FCT Grow IGR by 1.58% in 2022 Amid Economic Headwinds

By Bliss Okperan Despite the economic headwinds witnessed in Nigeria in 2022, the 36 states of the federation and the Federal Capital Territory (FCT) increased their Internally Generated Revenue (IGR). New data released by the National Bureau of Statistics (NBS) on Monday revealed that sub-nationals generated an IGR of N1.926 trillion compared with the N1.896 trillion generated in 2021, indicating an improvement of 1.58 per cent. Recall that last year, the country battled with Naira depreciation, inflation and others, forcing some citizens and organisations to cut down on their spending. But despite these economic challenges, the 36 states and the

Image
13-April-2023

FG Maps Ways to Cut Production Cost, Volatile Prices of Animal Feeds

By Adedapo Adesanya The Nigerian government, alongside its development partners, have proffered a roadmap to reduce the cost of production and the effects of incessant price volatility in the animal feed industry. This was a core message delivered by the Minister of Agriculture and Rural Development, Mr Mohammad Mahmood Abubakar, at the 2nd National Animal Feed Summit held in Abuja recently. He said that the summit, with the theme Harnessing Alternative Feed Resources for Sustainable Animal Feed Supply, aligned with the aspirations and agenda of the federal government to improve the animal feed policy, feed value chain, feed quality control

Image
20-May-2018

54 Stocks Drag NSE Market Indices Down by 1.34% in One Week

By Dipo Olowookere The major market indices of the Nigerian Stock Exchange (NSE) went down last week by 1.34 percent following losses recorded by some equities listed on the local bourse. Specifically, the All-Share Index (ASI) closed the week at 40,472.45 points, while the market capitalisation finished at N14.660 trillion. Similarly, all other indices finished lower with the exception of the NSE Consumer Goods Index which appreciated by 0.03 percent, while the NSE ASeM Index closed flat. During the week, 20 equities appreciated in price, higher than 35 in the previous week, while 54 equities depreciated in price, higher 49

Ad
Ad
Recent Stories
Image
21-February-2024

Tinubu Appoints Kemi Nanna Nandap as Comptroller-General of Immigration

By Modupe Gbadeyanka The Deputy Comptroller-General (DCG) of the Nigeria Immigration Service (NIS), Ms Kemi Nanna Nandap, has been elevated to the post of the Comptroller-General of the agency. This followed her appointment by President Bola Tinubu, according to a statement issued by his spokesman, Mr Ajuri Ngelale, on Wednesday. The presidential aide disclosed in the statement today that the appointment of Ms Nandap will take effect from Friday, March 1, 2024. She is taking over from Mrs Caroline Wura-Ola Adepoju, whose term in office expires on February 29, 2024, the disclosure said. “President Bola Tinubu has approved the appointment

Image
21-February-2024

AFC to Pump $40m Into African Medical Centre of Excellence Abuja

By Adedapo Adesanya  African instrumental infrastructure solutions provider, Africa Finance Corporation (AFC), has signed an equity investment term sheet, pledging up to $40 million towards the construction of an Abuja-based hospital, the African Medical Centre of Excellence (AMCE). The quaternary-level multi-specialty medical institution developed by the African Export-Import Bank (Afreximbank) in collaboration with King’s College Hospital, London, aims to revolutionise healthcare in Africa. Hospitals across West Africa struggle with funding, lack of essential resources, and limited access in rural areas. This flagship facility in Abuja is a key part of Afreximbank’s network of healthcare facilities, actively countering brain drain, reducing

Image
21-February-2024

Oyo Reopens Shri-Balaji After Closure Over Pollution

By Aduragbemi Omiyale The industrial company sealed earlier this month nonconformity and adherence to environmental laws of Oyo State, Shri-Balaji Industries Limited, has been reopened. The facility was unsealed on Wednesday on the directive of the Commissioner for Environment and Natural Resource, Mr Abdulmojeed Mogbonjubola. The company, which engages in the recycling of waste tyres to produce Pyrolysis oil and carbon black and steel wire as by-products, was closed by the state government to protect the lives of residents of the area. A statement made available to Business Post disclosed that for it to be reopened, Shri-Balaji paid a fine

Image
21-February-2024

FG to Restructure, Recapitalise Bank of Agriculture for Better Value

By Adedapo Adesanya The federal government has revealed plans to recapitalise and restructure the Bank of Agriculture (BOA) to bolster Nigeria’s agricultural sector and achieve national food security. This was one of the core revelations made by the Vice President, Mr Kashim Shettima, during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. He said there is a central role that BOA could play in achieving national food security, citing its extensive branch network across all senatorial districts in the country. Mr Shettima, however, expressed concern about the

Image
21-February-2024

Foundation Urges Nigerians to Adopt Waste Management Hierarchy

By Aduragbemi Omiyale A recycling organisation, Turn Plastic Recycling Foundation, has encouraged Nigerians to embrace the waste management hierarchy to make the country a zero-waste society. The Project Manager for the firm, Mr Leo Nwofa, while giving a summary of the project journey in the past two years of the foundation, said to save the planet, people must adopt the system of proper waste disposal for recycling after use. The waste management hierarchy gives top priority to waste prevention, followed by reuse, recycling, recovery and finally disposal. Speaking at an event to mark the second anniversary of Turn Plastic Recycling

Image
21-February-2024

Peter Obi Fumes as CBN Hikes Cargo Clearing Rate to N1,605/$1

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has once again increased the exchange rate for customs cargo clearance by 9 per cent or N133.06 from N1,472.76/$1 to N1,605.82/$1. The new rate, which has already been reflected on the Nigeria Customs Service (NCS) portal, will further dampen the hope of importers, and trigger an increase in the price of imported products like food, fuel, spare parts, and phones, among others. The CBN had recently reduced the exchange rate from N1,515.48/$1 to N1,472.756/$1 after the market eased following some recent policy steps. This review will be the 12th since the

Image
21-February-2024

Panic at Black Market as EFCC Intensifies Clampdown on BDCs

By Dipo Olowookere There is apprehension at the black market segment of the foreign exchange (FX) market in Lagos and other cities across the country as security officials, especially from the Economic and Financial Crimes Commission (EFCC), are going after traders at the landscape. Recall that on Monday, some agents of the organisation disrupted business activities in Abuja, and on Tuesday, a similar scenario occurred at the popular Alade Market in Lagos. On Wednesday, Business Post gathered that more places were touched, with two of the Bureaux De Change (BDC) operators allegedly picked up by security operatives in the Agege

Image
21-February-2024

VFD Group Donates Books to Comenius Nursery and Primary School

By Modupe Gbadeyanka About 1,000 copies of Mama’s Sleeping Scarf by renowned Nigerian writer, Ms Chimamanda Ngozi Adichie, have been donated to the pupils of Comenius Nursery and Primary School in the Ikola area of Lagos State. The educational items were given to the elementary school by a leading proprietary investment company, VFD Group Plc, as part of its Corporate Social Responsibility (CSR) initiative. The firm, which is committed to fostering growth across diverse industries in Africa, said the books were donated to promote reading culture among children and inspire young minds to explore limitless possibilities. Mama’s Sleeping Scarf is

Image
21-February-2024

DSS Warns Organised Labour To Shun Planned Protest

By Adedapo Adesanya The Department of State Services (DSS) has urged Nigerians planning to protest next week led by organised labour to halt the idea. According to a statement from the spokesperson of the Nigerian secret police on Wednesday, Mr Peter Afunanya, there were plans by sections of the organised labour to stage protests in parts of the country over sundry economic issues between February 27 and 28, 2024 “While the Service recognises such action as the legitimate right of the labour movement, it, however, urges the body to shelve the plan in the interest of peace and public order,”

Image
21-February-2024

FG Completes $70m Yearly Concessionaire of Zungeru Plant to Penstock

By Adedapo Adesanya The federal government has completed the transfer of the operations of the Zungeru Hydroelectric Power Plant (ZHPP) to a concessionaire, Penstock Limited, in a move that will see the country earn $70 million yearly from the deal. The Vice President, Mr Kashim Shettima, confirmed this during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. A concession is a kind of partnership between the public sector and often private companies that have shown its added value in a specific area, for example developing infrastructure. The