Global prices of cooking oil and meat rose in March due to limited palm oil supply in key producing regions and a stronger Euro against the US dollar, the Food and Agriculture Organization (FAO) has reported.
In its latest update, the FAO Food Price Index indicated a 3.7 percent rise in the vegetable oils index, mainly fuelled by higher prices for palm, soybean, rapeseed, and sunflower oils. The increase was supported by tightening supplies and growing global demand, alongside favourable currency shifts in the Eurozone.
“Palm oil prices climbed for the second month in a row due to constrained production in Southeast Asia, where seasonal lows affected output,” noted the FAO, which monitors international food commodity prices.
Soy oil prices were also lifted by strong global buying interest, thanks to its cost advantage compared to other edible oils, even as demand from the biofuel industry — especially in the US — remained muted. Similarly, global prices for rapeseed and sunflower oils edged higher due to falling export volumes and steady demand.
The meat index also posted an increase, largely driven by the rebound in pig meat prices. The European Union market, particularly Germany, saw increased demand after it was once again declared free of foot-and-mouth disease — a move that led countries such as the UK to lift previous import restrictions.
Ovine (sheep) meat prices saw an uptick as well, with buyers stepping up orders ahead of the Easter festivities. However, poultry meat prices showed little movement, as global production and demand remained largely balanced. This was despite continued outbreaks of avian influenza in major poultry-producing nations.
Meanwhile, the FAO Dairy Price Index was unchanged from February, holding steady at 148.7 points.
Overall, the FAO Food Price Index averaged 127.1 points in March, representing a 6.9 percent increase compared to the same month last year. Despite the recent rise, the index remains 20.7 percent lower than its all-time high recorded in March 2022.
