Prices for major food commodities have hit the lowest average monthly level since September 2009, as sharp drops in the prices of dairy products and vegetable oils more than offset some increases for those of sugar and cereals, according to FAO Food Price Index.
But prices of food stuffs at the various major markets in Ghana continued to rise, since the beginning of the year 2015. As of July, a big tuber of yam was selling above GHc10 at markets including, Tema Station, Makola, Kaneshie, Tudu and Mallam Atta, all located in Accra.
Three fresh medium size Tilapia traded at GHc20, while dried herring was going for GHc7 per margarine cup; four fingers of small sized plantain was sold at GHc3. Meat prices, meanwhile, remained stable, according to the July food price index. The FAO Food Price Index averaged 164.6 points in July, down 1.0 per cent from June and 19.4 percent from a year earlier.
The trade-weighted index tracks prices on international markets of five major food commodity groups; namely cereals, meat, dairy products, vegetable oils and sugar.
In July, the dairy price index dropped 7.2 percent from the previous month, mainly due to lower import demand from China, the Middle East and North Africa, amid abundant EU milk production, which has resulted in good availability of dairy products for export.
The July vegetable oil price index was some 5.5 percent below its June level, reaching its lowest value since July 2009. The recent slide was primarily caused by a fall in international palm oil prices due to increased production in Southeast Asia, combined with slower exports, especially from Malaysia, and a further weakening of soy oil prices on ample supplies for export in South America and a favourable outlook for global supply in 2015/16.
The cereal price index rose by 2.0 percent from June, but was still 10.1 percent below July last year’s level. For the second consecutive month, higher wheat and maize prices, in part due to unfavourable weather in North America and Europe, kept the cereal index rising, but rice prices continued to fall.
In July, the meat price index remained nearly unchanged from the previous month. An increase in international prices of bovine meat offset a decline for pig meat and ovine meat, while prices for poultry remained stable. The sugar price index rose by 2.5 percent from June 2015, largely due to less than ideal harvesting conditions in the main producing region of Brazil.