World food prices rose in March the most since 1990, when the United Nations Food and Agriculture Organization (UNFAO) began publishing data.
Food prices have reached record highs, boosted by rising prices of grains and vegetable oils due to the war in Ukraine.
FAO's price index of the consumer basket of basic food products increased in March by 12,6 percent compared to February, to an average of 159,3 points, reaching a new highest value since 1990.
Compared to last year's March, it is 33,6 percent higher, reports Hina.
The prices of vegetable oils rose the most in March, 23,2 percent compared to February, fueled by the increase in the price of sunflower oil due to reduced exports from Ukraine, the world's largest exporter.
Cereal prices rose by 17,1 percent on a monthly basis, reflecting a 19,7 percent rise in wheat prices and a 19,1 percent increase in corn prices, primarily due to the war in Ukraine.
Russia and Ukraine accounted for about 30 percent and 20 percent of the world's exports of those grains in the last three years.
"An additional reason for the increase in wheat prices was concern about the crop in the United States of America (USA)," said the FAO.
The price of sugar rose significantly in March, by 6,7 percent compared to February, due to higher crude oil prices and the strengthening of the Brazilian real.
A more significant increase in prices was prevented by the favorable outlook for production in India.
An index showing the movement of meat prices rose 4,8 percent in March, the highest value since the FAO began publishing reports, boosted by rising pork prices due to insufficient numbers of animals in Western Europe.
Poultry prices also increased, due to the bird flu epidemic.
The index that monitors the price of milk and milk products rose the most, 2,6 percent compared to February, which the FAO explains by the increase in the price of butter and milk powder.
Compared to last year's March, the prices of that category of food products are 23,5 percent higher.
In a separate report on supply and demand in grain markets, the FAO lowered its forecast for this year's wheat production to 784 million tons, which would mean it would increase by 1,1 percent compared to last year. In February, FAO estimated production this year at 790 million tons.
Production in Ukraine is expected to fall below the five-year average, based on expectations that at least 20 percent of Ukraine's winter wheat crop may not be harvested due to destruction, limited access or lack of harvesting resources.
"Favorable weather conditions support the forecast of Russian production, which should be above the five-year average, but it is preliminary, due to possible problems with the import of some agricultural raw materials," noted the FAO.
Wheat production in the European Union (EU) should decrease to 134 million tons, due to precipitation in the southern member states and possibly less sown area.
Due to the war in Ukraine, the FAO lowered the forecast for world trade in grains in the 2021/2022 season, by three percent, to 469 million tons.
The EU and India should increase wheat exports, and Argentina, India and the US corn exports, which will partly compensate for the loss of exports from the Black Sea region.
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