The Food and Agriculture Organisation (FAO) of the United Nations food price index for November was down 1.5 points to 125.1 points compared with the previous month and is 2.6 points lower than it was in November 2024.
The main cause of the decline was a drop in dairy, poultry meat and pigmeat price values, which were greater than the gains made in cereals, sheepmeat and a small increase in the beef price index.
The overall index fell for the third month in a row in November and is now 35.2 points below its peak, which was reached in March 2022.
Cereal prices
The cereals price index increased by 1.9 points in November to 105.5 points, but this is still 5.9 points below where it was in November last year. Global wheat price increases contributed to this, rising by 2.5% in November, though this was from levels last seen in 2020.
World barley and sorghum prices also increased, with all grain prices influenced by higher soybean prices during the month.
Dairy
The slide in global dairy prices over recent months is reflected in a 4.4-point decline in the dairy price index for November.
It is a perfect storm for dairy prices at the moment.
Rising production in key producing nations and abundant product available for export, combined with high butter and powder stocks in the European Union, all means that there is a significant oversupply.
Alongside a weak demand for powders in some Asian markets, it means that milk and dairy values continue to fall.
Meat
The meat price index is down by one point in November, but is still 5.8 points higher than it was a year ago.
The meat index is made up from a combination of beef, pig, poultry and sheepmeat values and the latest index reflects two of these increasing and two decreasing.
It was the non-ruminant pig and poultry meat categories that showed a decline.
Pigmeat fell by 2.1 points to 105.7 points because of abundant supplies in the EU and weakened demand from China, which introduced import duties in September.
The poultry meat index fell from 107.8 points in October to 105.7 points in November. The FAO says that this was driven by an abundance of export supply from Brazil, which set out to regain market in China following a period of suspension because of avina influenza.
Meanwhile, the beef price index hit its highest ever monthly level at 147.8 points, which is a marginal 0.3 point increase on October, but a 21.2 point increase on November 2024.
The reversal of import tariffs by the US, which is the world’s second-largest beef importer, is considered as a factor by the FAO in reducing the rate of increase in the beef price index.
After a reversal in October, the sheepmeat price index rebounded in November, increasing by 4.9 points to 155 points. This is explained by the FAO as being due to “solid global import demand”.
Irish farmers and processors won't find any surprises in the November food price index.
Dairy farmers have seen the evidence in their monthly milk cheque, which has been in reverse since September, and for processors, the evidence is in the stocks of dairy products that are everywhere, not just in Ireland.
Beef and sheep prices have remained strong all this year, which seriously reduced supplies, not just in Ireland but across Europe and the United States, meaning that there has been a ready market for the additional exports from Australia and South American countries.
Read more
Food price index down despite beef increase
FAO expect more cereals, dairy and meat in 2025
Most global food prices hold up well
The Food and Agriculture Organisation (FAO) of the United Nations food price index for November was down 1.5 points to 125.1 points compared with the previous month and is 2.6 points lower than it was in November 2024.
The main cause of the decline was a drop in dairy, poultry meat and pigmeat price values, which were greater than the gains made in cereals, sheepmeat and a small increase in the beef price index.
The overall index fell for the third month in a row in November and is now 35.2 points below its peak, which was reached in March 2022.
Cereal prices
The cereals price index increased by 1.9 points in November to 105.5 points, but this is still 5.9 points below where it was in November last year. Global wheat price increases contributed to this, rising by 2.5% in November, though this was from levels last seen in 2020.
World barley and sorghum prices also increased, with all grain prices influenced by higher soybean prices during the month.
Dairy
The slide in global dairy prices over recent months is reflected in a 4.4-point decline in the dairy price index for November.
It is a perfect storm for dairy prices at the moment.
Rising production in key producing nations and abundant product available for export, combined with high butter and powder stocks in the European Union, all means that there is a significant oversupply.
Alongside a weak demand for powders in some Asian markets, it means that milk and dairy values continue to fall.
Meat
The meat price index is down by one point in November, but is still 5.8 points higher than it was a year ago.
The meat index is made up from a combination of beef, pig, poultry and sheepmeat values and the latest index reflects two of these increasing and two decreasing.
It was the non-ruminant pig and poultry meat categories that showed a decline.
Pigmeat fell by 2.1 points to 105.7 points because of abundant supplies in the EU and weakened demand from China, which introduced import duties in September.
The poultry meat index fell from 107.8 points in October to 105.7 points in November. The FAO says that this was driven by an abundance of export supply from Brazil, which set out to regain market in China following a period of suspension because of avina influenza.
Meanwhile, the beef price index hit its highest ever monthly level at 147.8 points, which is a marginal 0.3 point increase on October, but a 21.2 point increase on November 2024.
The reversal of import tariffs by the US, which is the world’s second-largest beef importer, is considered as a factor by the FAO in reducing the rate of increase in the beef price index.
After a reversal in October, the sheepmeat price index rebounded in November, increasing by 4.9 points to 155 points. This is explained by the FAO as being due to “solid global import demand”.
Irish farmers and processors won't find any surprises in the November food price index.
Dairy farmers have seen the evidence in their monthly milk cheque, which has been in reverse since September, and for processors, the evidence is in the stocks of dairy products that are everywhere, not just in Ireland.
Beef and sheep prices have remained strong all this year, which seriously reduced supplies, not just in Ireland but across Europe and the United States, meaning that there has been a ready market for the additional exports from Australia and South American countries.
Read more
Food price index down despite beef increase
FAO expect more cereals, dairy and meat in 2025
Most global food prices hold up well
SHARING OPTIONS