February 22, 2012

Global food price index rises 2%

The food price index worldwide has increased by 2%, which is the first rise since July 2011, said the Kuwait Foodstuff Merchants and Manufacturers Union.

In spite of the rise, current prices are 7% less when compared with the same period last year, said Chairman Abdallah Al-Baijan. The Kuwait Foodstuff Merchants and Manufacturers Union compares reports on international and domestic food markets, he explained.

Sugar faces the highest rise globally, followed by cooking oil, grain, dairy products and meat, reports Kuwait Times. Most grain recorded a 2.3% rise in January, while rice maintained its level. Corn, however, rose by 6%, affected by fears over the ability of South American producers to balance the global supply and demand.

Wheat prices rose by 1.5% as a result of the extremely cold weather globally, particularly for major producers Russia. The freezing conditions are impeding large exports from the country.

Weather conditions have also raised the price of cooking oils by 3%, particularly palm and soy. The production of both has decreased due to the global winter season.

Meat witnessed insignificant rises last month, which did not exceed 0.5%. Chicken prices decreased by 1% as a result of the improving value of the US dollar against the currencies of producers like Brazil.

Beef maintained its high levels, reflecting the continuing weak supply. Lamb and mutton continue to witness a weak demand and are less expensive. Dairy product prices rose by 2.5% after a five-month consecutive dip. The rise comes due to the weakness in the supply of butter and cheese, primarily in the US.