News FAO Food Index
Meat prices enter fourth month of decline
World food prices have fallen in recent months as a result of the corona crisis. The meat price index is even falling for the fourth month in a row, according to the Food Price Index of the World Food Organization (FAO).
The FAO food price index is based on commodity prices of meat, dairy, grains, oilseeds and sugar. The index averaged 165,5 points in April. This is a decrease of about 3,4% compared to the previous month and the number of points is 3% lower than in April last year.
Meat price index
The meat price index reached 168,8 points in April. With this, the index is down 2,7% compared to the month of March and is recording the fourth consecutive monthly decline. The international listing fell due to a major decline in the demand for meat in the food service. Despite the reduced capacity in the meat processing industry, due to labor shortages and the temporary closure of slaughterhouses, the declining sales of the food service caused a stock build-up, which has a depressing effect on the price.
In addition to the meat price index, the dairy price index (-3,6%), the sugar price index (-14,6%) and the vegetable oil price index (-5,2%) have fallen significantly. The grain price index is only 0,7 points lower than in March, decreasing only marginally.
Meat consumption
US meat consumption will decline as a result of the corona crisis, according to the US Department of Agriculture (USDA). It is estimated that the average meat consumption per capita will fall by 2020% in 4. The decrease is the result of reduced meat production as a result of slaughterhouses closing due to corona infections among staff.
Meat production fell sharply in April as meat factories had to slow down their activities or have to close slaughter locations. At the end of April, President Trump demanded that closed slaughterhouses be reopened to limit a possible meat shortage. Agriculture Secretary Sonny Perdue expects most factories to resume operations from this week (week 21).
Before the coronavirus outbreak, average meat consumption was estimated at a new record of 103 kilograms per capita. The expectation has now been adjusted and comes to a meat consumption of 98,5 kilos per capita. With this expected decrease, the 5 years of increase in meat consumption will come to an end.
Chanti Oussoren
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