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Food Commodity Prices Continue to Plummet

January 12, 2016: 12:00 AM EST
Food and beverage manufacturers must be encouraged by the news that plentiful supplies and sluggish economic growth have depressed prices of meat, dairy and cereals, more than offsetting rising prices of sugar and vegetable oils. It is the fourth consecutive year that major food commodity prices have fallen, according to the U.N. Food and Agriculture Organization (FAO). The FAO Food Price Index ended 2015 at 154.1 points, lower than the year’s average of 164.1 points. An FAO economist pointed to “abundant supplies in the face of a timid world demand and an appreciating dollar” for the “general weakness” in food prices in 2015.
Judie Bizzozero, "Prices for Major Food Commodities Dropped 19% in 2015", Natural Products Insider, January 12, 2016, © Informa Exhibitions LLC
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