What's New

Recent events such as the war in Ukraine and the El Niño weather cycle have demonstrated how shocks triggering changes in production and distribution of food in one country or region can reverberate around the world, eroding food security for millions if not billions. Efficient, agile, and diverse trade networks can help countries and suppliers to cope with these shocks and strengthen food security. These networks are especially relevant for Latin America and the Caribbean (LAC).

The FAO Food Price Index remained stable in November, with increased vegetable oil, dairy, and sugar prices balanced by falling cereal and meat prices. The November 2023 Index was 10.7 percent below its 2022 level.

The Cereal Price Index decreased by 3 percent in November to reach nearly 20 percent below its November 2022 level. Maize prices fell most significantly in November due to increased sales in Argentina and higher seasonal supplies in the U.S. Wheat prices also fell, albeit less sharply, due to ongoing harvests in Russia. Rice prices remained stable in November.

As with other commodity markets such as rice, the global sugar market has seen large increases in prices due to El Niño-related production shortfalls in major exporting countries in South and Southeast Asia. At the same time, other factors are also constricting supplies. Port bottlenecks have tied up exports in Brazil, the world's largest sugar exporter, despite a large increase in production over last year's levels. Domestic biofuel policies in key exporting countries are diverting sugar production to biofuel production and thus limiting exports.

The BIMSTEC - Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation – country group consists of Bangladesh, Bhutan, India, Nepal, Sri Lanka, Myanmar, and Thailand. Together, these countries are home to more than 712 food-insecure people, and the prevalence of food insecurity has increased in the majority of the region since 2014. Given this food security situation, India’s recent export ban of non-basmati white rice and export duty on parboiled rice raise significant concerns for the region.

Food prices continued to decline, albeit more slowly, in October, according to the latest FAO Food Price Index. The Index was down 0.5 percent from September and 10.9 percent from October 2022.