Global food price index up for 2nd straight month

Global food price index rose for the second consecutive month, according to the United Nations Food and Agriculture Organization (FAO).

The hike was driven by “robust increases” in the prices of cereals (165.6 points) and dairy products (197.4 points), which averaged 2.7 percent and 3.3 per cent higher, respectively.

Wheat prices increased mostly on weather worries, including prolonged dryness in the US and cold wet conditions in parts of Europe.

Maize – another major cereal – saw its prices rise on strong global demand and deteriorating crop prospects in Argentina.

FAO sees global wheat output declining to 750 million tons, about one per cent below its near-record level.

Last year, worldwide cereal production, including wheat, hit a record level, rising by 33 million tons to nearly 2,646 million tons.

Price indices for sugar and vegetable oils, however, recorded declines in March, averaging 186 points and 156.8 points, respectively.

The meat price index remained almost unchanged at 169.8 points.

The Philippine Statistics Authority said the farm gate price of paddy rice continued its upward trend for the third consecutive month after it posted an increment of 10 percent by the end of March.

Rice prices have been increasing since the start of the year due to the lack of supply of cheaper rice from the National Food Authority.

During the third week of February, the average price of well-milled rice at the wholesale trade went up to P40.33 per kg.