ROME – The FAO Food Price Index declined 1 percent in October, according to the United Nation's Food and Agriculture Organization.
The Index slipped two points to 213 points from September's revised level of 215 points, FAO said. The agency attributed the slight declines to lower international prices for cereals and oils and fats which offset dairy and sugar price increases.
The Meat Price Index averaged 174 points in October, unchanged from September, FAO said. High feed prices, stagnating consumption and falling profitability have pressured the global markets for meat. FAO forecasts growth in total meat output in 2012 at less than 2 percent. With international prices close to record highs, growth in world trade is also slackening, the agency said.
The FAO Dairy Price Index climbed 3 percent to average 194 points in October. FAO attributed the increase to a seasonal tightening of export supplies and low stocks, in addition to firm global demand. A lack of substantial growth in output in the main exporting countries could push milk prices higher. FAO said milk production is expected to continue to grow in many countries, especially in Asia, Oceania and South America.