The affordability of food improved in nearly 75% of countries between September and November, according to new research.
A 2.8% decline in global food prices represents a four-year low and was the main reason behind the change, The Economist Intelligence Unit’s global food security index found. “All-time high production levels of corn, wheat and soybeans and falling global oil prices have resulted in improved food security outlooks for 79 of the 109 countries in the Index,” it said.
It also found that global food prices had fallen across all commodities except cereals, with dairy and sugar experiencing the most drastic declines. Hungary and Botswana were the greatest improved countries in the food affordability category, while falling oil prices were reducing the cost of food transportation.
Leo Abruzzese, global forecasting director for The Economist Intelligence Unit, said: “Supplies and stocks of the major grains are very strong, which will push global prices lower in 2015. The 60% decline in the price of crude oil since July also is good news for food security. During the last 25 years, food and energy prices have tracked each other closely, so cheaper crude oil usually means more affordable food.”
The organisation added: “The Economist Intelligence Unit expects prices for the major food crops to continue falling in 2015. The average annual price for corn… and soybeans… are both expected to fall by 10-15% this year from 2014. World soybean production will reach an all-time high in 2014/15, and US production is set to dwarf the previous record by more than 16m tonnes.”
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