- The U.N. Food and Agricultural Organization reports global food prices ticked up 2.1% in May to 155.8 points, the fourth consecutive monthly increase. However, the number is 7% lower than 2015 levels.
- The FAO’s trade weighted index, the FAO Food Price Index, shows prices rose throughout May’s index, with the exception of vegetable oil prices.
- The FAO has also released Food Outlook, a biannual publication which looks at developments affecting global food and feed markets.
The global food import bill will dip to $986 billion in 2016 — the first time in seven years that's down from $1 trillion, according to the FAO.
The values of four of the five sub-indices increased in May’s Food Price Index. Meat, dairy, cereals, and sugar all showed an increase.
With the U.N. reporting burgeoning commodity reserves for this year, ingredient manufacturers may want to consider exploring new or innovative uses for products. For example, wheat production will out measure utilization for the fourth consecutive year, creating inventories at a 15-year high. Outpourings are expected in the United States and China.
Another important element to note is that more farmers are using maize to feed livestock. China has lowered its maize reserves, which means heightened consumption. It's a decision that will most likely affect international markets, according to the FAO.