After seven months of declines, the FAO Food Price Index rose slightly in March due to increased vegetable oil, dairy, and meat prices. The Index remained 7.7 percent below its March 2023 levels.

Cocoa bean prices have climbed to record nominal levels over the past six months, more than doubling since August 2023 (Figure 1). This price spike has largely been driven by weather-related diseases that have reduced cocoa production in key West African countries accounting for almost three quarters of world supplies.

The real price of food has risen dramatically in 21st century, with the FAO food price index peaking at an all-time high in March 2022 at 116% above its 2000 value (Figure 1). While food inflation has long been a cause of concern for nutrition agencies in low- and middle-income countries (LMICs), new evidence is shedding light on the potential impacts of rising food prices on child malnutrition in LMICs.

Figure 1

Two years after Russia launched its full-scale invasion of Ukraine on February 24, 2022, the war continues to disrupt agricultural production and trade in Ukraine—one of the world's largest agricultural exporters—and poses an ongoing threat to global food security. Yet global commodity markets have adjusted to these disruptions, in part to due to increased exports by other suppliers, including Russia, easing the initial shock.

Six months after India introduced a set of export restrictions on rice with the aim of holding down domestic prices, global rice markets continue to feel the impact.

The FAO Food Price Index continued its decline in January, driven mainly by falling cereal and meat prices. The January 2024 Index was 10.4 percent below its January 2023 level.

In 2023, the FAO Food Price Index stood nearly 14 percent below its 2022 value, according to the report’s January edition. The December Index also declined month-on-month from November, falling 1.5 percent due to declining sugar, vegetable oil, and meat prices.

Achieving efficient and effective fertilizer usage in agricultural production is a critically important economic and environmental policy objective for countries at all stages of economic development, although the nature of the policy problem may vary radically in different contexts.

International food commodity prices have experienced a series of shocks over the past decade. The prices of rice, maize, and wheat spiked in 2007-08 as a result of supply shocks, demand for biofuels, and export trade restrictions. Commodity prices increased again in 2010-11. And most recently, global supply chain disruptions in the aftermath of the COVID-19 pandemic and Russia’s invasion of Ukraine sent international food and fertilizer prices soaring, though they have moderated somewhat after peaking in mid-2022.

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.