Rome: The UN Food and Agriculture Organization (FAO) reported a 0.4% decrease in global food prices in January, attributed to declines in the prices of dairy, sugar, and meat.

According to Anadolu Agency, the FAO's food price index, which monitors monthly changes in the international prices of a specific group of globally traded food commodities, dropped to 123.9 points last month. This marks the index's fifth consecutive monthly decline.

The FAO data revealed that the vegetable oil price index saw a 2.1% increase, fueled by a seasonal slowdown in Southeast Asia and a rise in demand for biofuels. Meanwhile, the cereal price index experienced a slight increase of 0.2%, despite a 1.8% rise in rice prices, due to an abundant supply of wheat and maize.

The sugar price index decreased by 1%, influenced by a recovery in production in India and positive projections in Thailand. The dairy price index fell by 5% compared to December, primarily owing to an oversupply of cheese and butter. Additionally, the meat price index declined by 0.4% as a result of slowing global demand and an increased supply of pork.

The FAO also revised its forecast for global cereal production in 2025 upwards to 3.023 billion tons. The increase is attributed to higher wheat yields in Argentina, Canada, and the European Union, as well as expanded corn planting areas in China and the US. Moreover, the FAO projected that the global stock-to-use ratio would reach 31.8%, marking the highest level since 2001.