NUTRITION

Food prices. On January 9, the United Nations Food and Agriculture Organization (FAO) released its monthly price index, revealing that in December prices reached their highest level in five years. The food categories included in this measurement are cereals, oils, meats, dairy products and sugar. The price increase is attributed, among other factors, to the rise in the price of oil and the scarcity of resources. In response to this, FAO is expected to promote measures to encourage local production of fresh food in the countries of the region.

According to FAO, world food prices rose in December 2019 for the third month in a row, averaging 181.7 points, equivalent to a 2.5 percent increase over November. These numbers, which reflect changes in international prices of the five major food categories traded on the markets, show their highest level since December 2014.

The rise in palm oil is attributed to strong demand for biofuels. Sugar, on the other hand, increased by 4.8 percent in December due to the rise in oil prices, which led sugar refineries to use more cane to produce ethanol and, consequently, reduced the availability of food worldwide. Cereal prices were up 1.4 percent from November, mainly at the expense of wheat, while meat remained unchanged from the previous month. The dairy price index in December was 3.3 percent higher than in November due to limited supply availability.

Next steps

With international food prices peaking in the last five years, FAO, having warned of this rise, is expected to provide a series of incentives to promote local food production and family farming. If this scenario arises, the expectation is that the countries of the region will develop a series of measures to strengthen both national producers and sustainable production practices.