UN agency reports world food prices declining to six-year low | Division for Inclusive Social Development (DISD)

The United Nations Food and Agriculture Organization (FAO) confirmed 4 June that food prices are continuing to drop. The UN monthly food price index states that the May 2015 forecast for the global production of wheat, coarse grains and rice has continually been progressing as maize harvests in China and Mexico and plentiful wheat harvests in North America and Africa are expected.

In May 2015, the world food prices dropped 3.8 percent which was a 2.9 percent drop in dairy and a one percent drop in meat prices. It is also predicted that because of increases across Asia, the global rice output will grow 1.3 percent from last year; this number is simply a rough prediction though due to the impact that the seasons have on rice production.

Even with the decrease in price of most food, there are still some foods raising in price due to production. The sugar price index has gone up two percent due to delays in Brazil's crushing season and the price of vegetable oil has also raised 2.6 percent due to the strengthening of meteorological conditions provoked by El Niño may affect production in Southeast Asia.

The Food Price Index tracks prices on international markets of five major food commodity groups: cereals, meat, dairy products, vegetable oils and sugar. Altogether these numbers mark the lowest value of the Food Price Index since September 2009.

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