Global food prices are dropping, but are still high

Global food prices continue to drop but still remain significantly higher than a year ago.

Today’s FAO Food Price Index showed a steep drop in July of nearly 9 percent, but they are still 13 percent higher on the year. The July decline was the most drastic since 2008.

Vegetable oil and cereals came down significantly. Sugar, dairy, and meat also fell, but to a lesser extent.

Related Stories
Low farmer shares reflect deep consolidation across the food chain, keeping producer returns thin even as retail food prices remain high.
Tyson’s Nebraska plant closure and falling Cattle on Feed numbers send cattle markets tumbling. Analysts warn of tighter supplies, weak margins, and rising global competition.
Removing the 40% duty sharply lowers U.S. beef import costs on beef, coffee, fertilizer and fruit, and restores Brazil’s competitiveness during a period of tight domestic supply.
Lower turkey and wheat prices helped ease Thanksgiving costs, but underlying farm-sector pressures remain significant.