View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 8, 2021

Global food commodity prices again hit decade-high – FAO

World cereal output is projected to hit an all-time record – but yields will be below expected demand, the FAO has forecast.

Food commodity prices once more hit a ten-year high in September, according to the latest data from the UN’s Food and Agriculture Organization.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The FAO Food Price Index (FFPI) averaged 130.0 points in September, up 1.2% from August and 32.8% higher than in September 2020. Tightening supply and “robust” demand for staples such as wheat and palm oil were behind the rise, the FAO said.

Drawn up by the FAO, the FFPI is a measure of the monthly change in international prices of a basket of food commodities. The last time the index hit a similar level was in 2011 when it reached 131.9.

The FAO Cereal Price Index increased by 2% in September from a month before, with world wheat prices up almost 4% – and as much as 41% higher than a year earlier – due to tightening export availability amid strong demand.

World rice prices also rose in September, while those of maize increased by a moderate 0.3% – averaging 38% higher year-on-year – as improved global crop prospects and the start of harvests in the US and Ukraine largely countered the impact of hurricane-related port disruptions Stateside.

“Among major cereals, wheat will be the focus in the coming weeks as demand needs to be tested against fast-rising prices,” FAO senior economist Abdolreza Abbassian said.

The organisation’s Vegetable Oil Price Index was up 1.7% on the month – and about 60% from September 2020 – as international palm oil prices reached ten-year highs due to “robust” global import demand and concerns over migrant labour shortages hitting production in Malaysia.

Separate data from the FAO suggests world cereal output in 2021 is on course to hit an all-time record of 2.8bn tonnes. However, the organisation said that is less than the anticipated consumption requirements in the 2021/22 marketing season.

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food