More

    Vegetable oil, dairy prices drive continued rise of Global Food Price Index

    (Photo by Christopher Furlong/Getty Images)

    With food manufacturers already facing a barrage of extra costs, latest data from Food and Agriculture Organization’s (FAO) Food Price Index suggests that the pressure from high commodity prices is unlikely to ease any time soon.

    The, which tracks international prices of the most globally traded food commodities, averaged 135.7 points in January, 1.1 percent higher than in December.

    As per FAO, the Vegetable Oils Price Index was the main driver in January, increasing by 4.2 percent month-on-month and reversing its December decline to reach an all-time high. 

    Palm oil prices were largely underpinned by concerns over a possible reduction in export availabilities from Indonesia, the world’s leading exporter, while soy oil prices were supported by robust import purchases, particularly from India. Meanwhile, rapeseed oil prices were pushed up by lingering supply tightness, and sunflower seed oil quotations were impacted by supply tightness and surging global import demand.

    The Dairy Price Index also increased by 2.4 percent, its fifth consecutive monthly rise, with the steepest increases registered for skim milk powder and butter. Cereal and Meat prices only edged up slightly, while sugar was the only commodity to post a decrease in January, down 3.1 percent from the previous month due to favourable production prospects in major exporters.

    Boubaker Ben-Belhassen, Director of FAO’s Markets and Trade Division said, “Reduced export availabilities on top of other supply-side constraints, especially labour shortages and unfavourable weather, largely pushed vegetable oil prices up to an all-time high. There is a concern the impacts of these constraints will not ease quickly.”

    Consumer goods manufacturers around the world have been raising prices in recent months to offset higher energy, labour, supply chain, and commodity costs.

    Latest

    Family-owned plant-based startup secures funding

    UK-based family-owned startup Shicken has raised £4 million in...

    KP Snacks launches new Tyrrells recycled plastic pack

    KP Snacks today announces the introduction of 25 per...

    Brew Dog delivers low ABV with new Cold Beer

    This summer, BrewDog is cooling down the beer aisle...

    Mangrove portfolio dominates at World Whiskies Awards 2024

    The independent distributor Mangrove’s world whisky portfolio recently cleared...

    Don't miss

    Family-owned plant-based startup secures funding

    UK-based family-owned startup Shicken has raised £4 million in...

    KP Snacks launches new Tyrrells recycled plastic pack

    KP Snacks today announces the introduction of 25 per...

    Brew Dog delivers low ABV with new Cold Beer

    This summer, BrewDog is cooling down the beer aisle...

    Mangrove portfolio dominates at World Whiskies Awards 2024

    The independent distributor Mangrove’s world whisky portfolio recently cleared...

    Co-op’s net zero targets validated global body

    Co-op has become the first UK convenience retailer to...

    Family-owned plant-based startup secures funding

    UK-based family-owned startup Shicken has raised £4 million in funds from Matthew Glover’s Veg Capital, which has tripled its investment in the plant-based meat...

    Co-op’s net zero targets validated global body

    Co-op has become the first UK convenience retailer to have its net zero targets validated by the globally recognised Science Based Targets initiative (SBTi). According...

    Kitwave Group acquires 130-year-old delivered wholesaler

    Kitwave Group plc, the delivered wholesale business, has acquired Total Foodservice Solutions Limited, a leading independent food wholesaler in the North of England. Established over...