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FAO Meat Price Index for 2015 at five-year low
18 January 2016
The United Nations Food and Agricultural Organisation (FAO) Food Price Index* averaged 154.1 points in the final month of 2015 – 1.5 points (1%) lower than the revised November value, and 31.7 points (17%) below where the Index finished 2014. With the exception of sugar and oils, the global prices of all of the food commodities used in the calculation declined in December.
Looking at 2015 as a whole, the Food Price Index averaged 164.1 points – almost 19% lower than the year before. In fact, 2015 marked the fourth consecutive annual decrease in value for the Index. FAO attribute this to higher supplies, an ease in global demand and an appreciating US dollar throughout the year.
The FAO Meat Price Index averaged 152.1 points in December – down 3.5 points (2.2%) from the previous month. Lower quotations across all categories attributed to the overall decline – although ovine, bovine and pigmeat registered the greatest falls. For bovine meat, reduced import demand from the US saw increased competition in other markets, while a surge in pigmeat production in the EU pressured both domestic and export prices during the month.
For 2015, the Meat Price Index averaged 168.4 points – a 29.9 point (15.1%) decline on 2014 levels, which was a record year. This is the lowest annual average for the Meat Price Index since 2010.
*The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices, weighted with the average export shares of each of the groups for 2002-2004 (Food and Agriculture Organisation of the United Nations).
