Global food prices continued to rise in June following an uptick in May, according to the Food and Agricultural Organization’s (FAO) Food Price Index released last week. The index measures global monthly changes in cereal, vegetable oil, dairy, meat, and sugar.
Dairy, cereal, and meat are to blame for global price increases (sugar and vegetable oil prices dropped in June). Dairy prices rose over 8% MoM. If you noticed butter prices go up (a whopping 14.1% — an all-time high), it’s because of limited export availabilities from main dairy producing countries. This impacted cheese and skim milk powder prices as well.
Cereal prices rose over 4% in June. U.S. wheat prices have risen largely due to deteriorating crop conditions. Farmers expect this trend to continue, with extreme weather impacting a variety of crops over the next 12 months. However, not all cereal grains have been impacted. Record harvests in South America, for example, kept maize prices steady.
June marked the sixth consecutive month of moderately rising meat prices. Limited red meat exports from Oceania, a lower domestic supply, and avian influenza concerns in Africa, Asia, and Europe impacted prices.