International food prices in 2016 dropped 16 percent in the past 12 months—a 7-year low—according to the UN's Food and Agriculture Organization (FAO). You'd think this means we can feed more people in the world, right?
Not exactly. Chances are, none of the savings will trickle down to your pocket and, what's worse, farmers in some countries will now make even less money off their crops than they did last year.
- France Bans Food Waste, Makes Grocery Stores Donate Unsold Items
- Every Food Is a Snack Now
- Olive Oil Prices Are About to Spike 20 Percent, Warn Experts
As CNBC first noted, global prices for five commodity groups (major cereals, vegetable oils, dairy, meat and sugar) have dropped. The Sugar Price Index, for example, dipped 4.1 percent since December, largely due to better crop conditions in Brazil, the largest producer and exporter of sugar. The Dairy Price Index fell by 3 percent because of large supplies in the EU and New Zealand. Cereals and Vegetable Oils indices both dropped by 1.7 percent and the Meat Price Index fell 1.1 percent.