Food prices drop for third consecutive month: FAOListen /
Food prices dropped for the third consecutive month in December last year, says the UN Food and Agriculture Organization (FAO).
The FAO Food Price Index which declined by just over one per cent was led by drops in the international prices of cereals, oils and fats.
According to FAO, the sharpest falls in 2012 were registered by sugar, which dropped by 17.1 per cent, followed by dairy products, which declined by 14.5 per cent, and oils which went down by 10.7 per cent.
The UN agriculture agency says price declines were more modest for cereals at 2.4 per cent, and meat which dropped by 1.1 per cent.
FAO says after surging between July and September 2012 as a result of production uncertainties and tightening supplies, cereal price exports dropped because of weaker demand for feed and industrial uses.
Regarding maize, the agency says prices fell sharply in December as large export supplies in South America relieved market pressure.
Rice prices also dropped in December on expectation of good harvests but wheat values changed little as trade remained subdued.
Beng Poblete-Enriquez, United Nations.