By Ayomide Otitoju
World food commodity prices declined by 2.1% in 2024 compared to the previous year, according to the UN Food and Agriculture Organization (FAO). The FAO’s overall Food Price Index averaged 122.0 points in 2024, 2.6 points lower than in 2023.
Despite the annual decline, food prices saw an upward trend over the course of the year, rising from 117.6 points in January to 127.0 points by December. From December 2023 to December 2024, the index climbed 6.7%, primarily driven by increases in meat, dairy, and food oils.
While food prices showed a modest dip compared to 2023, they remain approximately 26% higher than they were five years ago, illustrating the persistent impact of global disruptions. The pandemic initially led to lower food prices, but a surge in inflation following the global economic rebound pushed prices higher.
The war in Ukraine further exacerbated price increases, as both Russia and Ukraine are major wheat exporters. While efforts to ensure uninterrupted shipments helped ease prices, the average value of the Food Price Index dropped in early 2024.
The drop in the index was largely attributed to declines in cereals and sugar prices, with cereals falling by 13.3% and the FAO’s sugar price index dropping by 13.2%. However, these decreases were offset by a 9.4% rise in the vegetable oil price index.
