The FAO’s price index shows a drop in food prices to their lowest level since August of 2010.
The following article is from the NAFB News Service:
The Food and Agriculture Organization’s price index slipped for the sixth consecutive time, showing a drop in food prices to their lowest level since August of 2010. Reuters reports all major food groups in the index for September dropped, except for meat. The index was led by a sharp decline in dairy prices. The index, which measures monthly price changes for a basket of cereals, oilseeds, dairy, meat and sugar, averaged 191.5 points in September, down 5.2 points or 2.6 percent from August. The figure was 12.2 points or 6.0 percent below September 2013. The FAO the current streak is the longest period of continuous falls since the late 1990s.
Further, the Russian ban on dairy imports from countries that have imposed sanctions on Moscow over the conflict in Ukraine continues to weigh on dairy prices. European Union dairy farms are moving away from cheese production and raising butter and skimmed milk output, which is in turn stimulating powdered milk production “as manufactures seek to adjust products to ensure the best returns,” FAO said.
Source: NAFB News Service
Posted by Haylie Shipp