Food prices ended 2016 higher for the first time in four years, thanks to a jump in vegetable oil, sugar and dairy, according to the UN Food and Agricultural Organization.
The UN FAO index for December rose 12 per cent from a year before, although on an average basis, 2016 prices fell for the fifth year in the row, main due to subdued cereals, including rice, wheat and corn.
December’s vegetable oil prices rose almost 30 per cent from the previous year thanks to due to low global inventory levels for palm oil while soya oil firmed on both weather concerns in Argentina and the prospect of rising uptake by the biodiesel sector in the US and Argentina.
Restrained milk production in the EU and Oceania and buoyant international and domestic demand continued to underpin the dairy market which was up 29 per cent while sugar was up 26 per cent year on year.