Global food prices continue to fall

The prices of cereals, meat and dairy continue to fall globally in fifth straight year. While the  prices of sugar and vegetable oils rises in 2016. The prices of Palm oil and soybean oil also continue to rise in 2016. There is strong demand for soybean in Latin America to use it in biodiesel. The prices of sugar continue to rise through out the year before it fell in December. This fall was mainly because of good production of sugarcane in Brazil. The prices of vegetable oils reached their highest since 2014. The prices of cereals continue to fall through out the year. It has lost its value around 39% in last five years.

In the US, the food prices continue to fell for straight 9 months. This the longest food deflation since 1960 in US. The consumers are happy for cheaper food but farmers are at pains. The farmers are not happy at all. If this trend continue then we will be out of the production said one farmer. With these prices we can not meet expenses. It is becoming less attractive to grow food items or to grow animals for meat. According to some experts these prices are not rational. We need growth in the prices to make it rational and reasonable.

The Food and Agriculture Organisation (FAO) has predicted  the continued fall in the prices of most food items. Which is not a good news for the farmers.