Source:Rita Jane Gabbett, MEATINGPLACE, 8/5/16

The Food and Agriculture Organization of the United Nations monthly FAO Food Price Index averaged 161.9 points in July 2016, 1.3 points (0.8 percent) below June and 1.4 percent below the corresponding month last year.

The modest decline in July that followed five consecutive monthly increases was largely caused by drops in international quotations of grains and vegetable oils, more than offsetting firmer dairy, meat and sugar prices.

The FAO Meat Price Index averaged 159.9 points in July, 2 points (1.3 percent) higher than its revised June value.
All meat products covered by the Index saw prices firm, in particular pork, underpinned by limited availabilities. Notable developments include a shortage of pigs for slaughter and lighter slaughter weights in the EU and reduced output of sheep and bovine meat in Oceania, caused by herd rebuilding.

At the same time, international demand for meat remains firm, supported by a recovery in purchases by China, and sustained imports by several countries elsewhere in Asia.

The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices, weighted with the average export shares of each of the groups for 2002-2004.

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