The Nation Newspaper

Tag: prices

  • Oil prices to sag till year-end

    Oil prices to sag till year-end

    Crude oil prices remained weak early this week as a slowing demand outlook implied oversupply will remain in place for months, prompting speculators to cut their bets on rising prices.

    Front-month United States  crude futures were trading at $44.65 per barrel at  five cents above their last close but more than 12 percent lower than their October peak.

    International benchmark Brent was four cents higher at $48.03 a barrel, but more than 11 per cent below October’s high.

    ANZ bank said it expected prices to remain low for the remainder of this year and that speculators were cutting their bets on higher prices.

    “Net speculative (United States) long positions declined by 13,841 contracts for the week ending 20 October,” the bank said.”We remain cautious on commodity prices into year-end given weak demand conditions.”

    On the demand side, research agency, Energy Aspects, said in its quarterly outlook that it “forecast a sharp slowdown in global oil demand across the fourth quarter of 2015, at 0.8 million barrels per day, which marks the slowest pace of growth in five quarters”.

    Energy Aspects said the ongoing oversupply in crude oil was starting to spill into the market for refined products, with a product stock-build of 0.6 million barrels per day seen in the third quarter.

  • Instability in food prices lingers

    What is responsible for the instability in food prices? TONIA ‘DIYAN sought the views of some traders and consumers against the backdrop of rising foodstuffs prices.

    •Traders lament continuous hike in price of food stuff

    Prices determine the demand for every item. The higher the price, the lower the demand. This is also applicable to foodstuffs. There low patronage due to the increasing prices of commodities, The Nation shopping gathered from traders.

    To some traders, the instability in prices of food items is caused by the devaluation of the Naira.

    A seller of frozen fish at Mushin Market, who requested to be identified only as “Iya Abbey”, believes  the devaluation of Naira is the reason for the hike in the price of fish.

    She said: “The prices of my goods have increased due to increment in the value of dollar which I find shocking as I have never heard of a case where dollar’s worth affects the prices of fishes”. The fish we buy at the rate of N9,000 is now purchased for N11,000 and N12,000 while that sold N7,000 now sells for N13,000.”

    She lamented the low patronage of her goods caused by the increase in prices, making the business less profitable. “Business is not moving like before because of the rate at which we sell our fishes now compared to before. We now sell three Titus and Kote fish for N1000, it was formerly N600. In fact, we formerly sold them for N500 but that has changed now.”

    Mrs Muyinat Adeyemo, another trader at Mushin Market selling plantain, had no different tale to tell. She also blamed the devaluation of Naira for the hike in the cost of her goods which were formerly one of the cheapest.

    “The increase in dollar has played a role in the hike of my plantain price. Also, the inadequate distribution of plantain due to the restriction in the movement of trailers is also a contributing factor,” she said.

    She noted that this month’s sales were better than the last two months when she recorded low sales, because of fuel scarcity at that period. She told the Nation Shopping that plantain formerly sold for N100, N200 no goes for N300 and N500. “Plantain is now a food for the rich,” she said, noting that most of her customers complain as they but plantain reluctantly.

    The hike in the price of some other food stuffs is not only caused by the devaluation of the Naira but also because of the ban placed on them.

    A rice and groundnut oil seller, who pleaded anonymity, said the hike in the price of her goods is not only due to the devalued Naira but also because of the ban on importation of rice.

    She said: “Before now, we sold a bag of rice for N7,500; a bag now costs N9,000. However, this depends on the quality as we also have some for N10,500 and N11,000. Also, the price of groundnut oil has gone up as we now buy at N6,160 as against N5,850.”

    Tomato sellers, on the other hand, experienced a reduction in prices compared to last month. A bowl of tomatoes sold for N500 now goes for N200. Mrs. Bisola Olowu, a tomato seller said: “The prices of our good will continue to fluctuate because its availability is seasonal.”

    Generally, a survey of other major markets showed that prices of commodities have been irregular since the beginning of this year. Some items are still sold twice their prices despite that that the festive season, which influenced their prices increment, is over. but the reverse is the case with staple items, particularly in Lagos.

    This development has forced various categories of eateries and canteens to increase the prices of their meals, attributing the high costs to unstable and unfavourable prices of farm produce which, according to them, they still buy for twice their original prices.

    Beans have been the most expensive in recent times and customers have not stopped lamenting due to its unstable price – especially those brought from the northern part of the country. Mrs Romoke Adewale, who sells beans in small and large quantities at Daleko Market, complained that a bag of beans sells for between N16,000  and N18,000, and the price has not come down.

    “Beans price hike has to do with the crisis in the North most of the time because that is where it is comes from. The price has been very unstable; sometimes, we get tired of purchasing because we are not sure of how much we are taking with us,’’ she said.

    Some traders also attributed the unstable prices to flood in some northern states where food items are mainly transported from. Farmlands are sometimes washed away and farmers with a few crops will increase the prices to make up for their investments,” he said.

    A wheelbarrow of yam costs between N8,000 and N15,000. It hasn’t been stable since after Christmas.

    The survey showed that the price of garri, a common staple food among low income earners, has also been irregular, jumping to N280, sometimes, N300 for a brand while another sells for between N200 and N230. Yam flour now costs between N750 and N800 at times, while those mixed with cassava sell for N500 and N600.

    According to traders, the prevailing security challenges in some parts of northern states have also prevented many of them from travelling to places where some commodities are available at affordable prices.

    A yam seller, Mr Bala Usman, said  the country was no longer safe for traders who travel to the North to get foodstuffs cheap, so that they can also sell them cheap to consumers. “The yam you see here are costly; it is not our fault; we also have to sell to make profits. We are afraid to travel to our home towns,” he said

    A retailer, Mr Franklin Idumebor, said: “Foodstuffs are now very expensive. They keep rising and I wonder when the prices will fall; we sell according to how we buy.”

    The price of onions has also gone up tremendiously and it has become scarce. A bag which was sold for N5,000 and N6,500, now goes for N15,000, it cost N6,000 to N7,000 as at last month.

    Consumers said they are at the receiving end. “When the prices are increased, we tend to suffer for it more,” said Mr Uchenna Kalu.

    He suggested a price control board to regulate food prices, saying food is one of the three basic amenities a human being shouldn’t be deprived of.

    For Mr Femi Abass, the problem is with market women who refuse to reduce prices of food items even when they buy at cheap rates.

    “You often hear them say: ‘na so we buy o’! And when you say the price has reduced, they shout at you saying: ‘na old market I get, I never go buy new one.’

    He added, “the problems at the local level are created by us. We are usually the architect of our misfortunes,” he said

  • Airbus urges A320 suppliers to cut prices by 10%

    European plane maker Airbus is pressing suppliers on its A320 jet programme to slash prices by at least 10 percent by 2019 in order to make the company’s main cash cow more competitive, three people familiar with the matter said.

    The enhanced efficiency plans echo rival Boeing’s cost-cutting Partner for Success initiative, which has redrawn the relationship between suppliers and the world’s biggest planemaker as the industry gears up for record output.

    Airbus’ cuts are just one part of an internal efficiency program called SCOPe+ that also seeks savings through a close look at procurement and the way planes are developed and sold.

    Airbus has told suppliers that the prospect of increased volumes and a longer lifespan for its best-selling jet, which has enjoyed a surge in sales due to an important makeover, means it is time to “review all options” in its supply chain.

    This includes a fresh look at the company’s procurement strategy that could include extra use of twin sourcing for crucial parts: a strategy designed both to reduce costs and to reduce the risks of shortfalls as production increases.

    Airbus is also looking at further shifting its business model to allow airlines less choice over accessories that they previously ordered direct, known as Buyer Furnished Equipment.

    Also involved is a longer-term effort to weave manufacturing costs into the design process to prevent unintended overruns in costs on the factory floor, a tool known as “Redesign to Cost.”

    SCOPe+ aims to achieve a new baseline for supplier costs in 2019 that is “at least 10 per cent” lower compared with 2015, according to suppliers and an Airbus document seen by Reuters.

    Though Airbus has confirmed the existence of the SCOPe+ initiative, its details have not been publicly disclosed.

    The initiative “is part of Airbus” long-term commitment toward boosting competitiveness through operational efficiency and continuous improvement,” a spokeswoman said.

    In 2014, Airbus spent about 13 billion euros on parts for its A320 family of jets, which compete with Boeing’s 737 in the busiest part of the $120 billion-a-year aircraft market.

    Each plane contains three million parts.

    The pressure on suppliers for price cuts comes as Airbus and Boeing are raising production of their single-aisle models to around 50 aircraft a month each, up from 42 a month, and pondering a further step-up to 60 a month.

    Such increases in volume are traditionally the aerospace industry’s most valuable lever for driving down unit costs.But the SCOPe+ and Partner for Success programs aim to complement this with direct contributions from suppliers, driving profit margins further up industry’s food chain. Boeing has told suppliers to cut prices by 15 per cent or lose business.

    While planemakers lead the industry in terms of revenues and operating profits, the top 20 companies in the aerospace sector by operating margin are all suppliers, according to Deloitte.

    Manufacturers argue their willingness to gamble on new products, such as hugely popular upgrades of the A320 and Boeing 737 jets, is driving record sales and creating wealth across the industry that ought to be shared through lower parts prices.

    But many small suppliers argue the efficiency campaigns mask a grab for part of their profit margins. They say they face their own challenges in investing in equipment to support higher production, with no guarantee how long the boom will last.

  • Prices of staple food remain high

    During  Sallah, sharing and felicitating with one another is not the only trend as the celebration is usually  accompanied with an increase in food items three days to the celebration. Items like groundnut oil, rice, palmoil, pepper, tomato and ram fall in the category.

    At Mushin market, the increase is evident in the prices as a basket of tomato which formerly sells for N6,500, N6,000, now goes for N7000, N8,000 and N9,000. Small sized basket cost N4,500. 25litres groundnut oil cost N6,500 as againt the former N6000. 5kg of rice cost N1,200 .

    Ordinarily, the explanation for this increase has always been because of the season that is out as the producers would have taken rest for these few days and in the process causing a little scarcity in these goods especially the tomato and pepper, but there is a twist in the story for this year as most of these buyers blame the deteriorating state of the economy as a main causative agent, The Nation Shopping gathered.

    For groundnut oil sellers, they do not belief that it is because of the festive season that there is an increase in price of goods. Speaking with Mrs. Shade Mustapha, a rice and groundnut oil trader in Mushin market, she said “the hike in price does not have anything to do with Sallah because there was no money in Nigeria before now so until the government, push the money out and allow it flow round, that is when the price will come down.”

    Another groundnut oil trader, Mrs. Etoro Akpan attested to this fact as she explained that the prices would not reduce even after the Sallah period till next year when there would be a reduction.

    For the tomato sellers, they still stand that sallah is the main reason for the increase in price but explained that the bad economy still played a part in the increase of these goods.

    Mrs. Bimpe Olowu, a pepper seller explained that immediately after sallah, there would be a drastic reduction in the price and that the price of tomato for this year’s sallah is lower than that of last year.

  • Food prices drop in Lagos markets

    Food prices drop in Lagos markets

    Between April and July, many housewives adopted various survival strategies to cope with escalating prices of  tomatoes and pepper as well as other staple foods—no thanks to naira devaluation and other factors. However, other food items maintained their old prices while few others are experiencing increment, TONIA ‘DIYAN reports.

    Since the beginning of this month, the prices of tomato and pepper which used to be extremely expensive have started falling, quantity has also increased. The situation was not like this in the last four months when many households faced hard times as prices of food items increased by over 100 per cent due to factors such as insecurity, flood caused by heavy rainfall which washed away large quantities of ripe crops before they could be harvested and the steep fall in the value of the naira.

    While the situation lasted, consumers adopted different methods to cope; many households bought little quantities of fresh ingredients, combined them with dried pepper and packaged tomatoes in cans. Housewives lamented that it wasn’t easy coping that period, especially having to manage the monthly allowance every time. Most of them said they would have to do lots of explanations to convince their husbands to increase food allowance.

    From investigations, the situation was worsened by alleged extortion by policemen at the many checkpoints on the way to Lagos when farmers who harvest and distribute these items return from the north. This is in addition to the activities of state and local government officials that charge and collect all manners of spurious charges when they finally get here.

    According to the famers, the scarcity and hike in the price of staple foods, was due to high cost of transportation occasioned by the fuel scarcity in the country that virtually killed the economy at the beginning of the year and off season period for perishable food items.

    In April, acute nationwide fuel scarcity caused increment in the prices of staple foods. Traders who buy produce in small quantities attributed this to high cost of transporting goods from their places of purchase to the market.

    In June when Ramadan fast began, price-sensitive markets across Lagos suffered from higher food costs which affected the demand for food items, particularly those of tomato and pepper. And visits to some major markets in Lagos where these items were sold in large quantities showed then that prices of tomatoes, pepper, chilli pepper and others moved up sharply without any likelihood of coming down any time soon.

    Today, the price of the produce have become very affordable, a big basket of tomatoes now sells for N20, 000 or less depending on the size and type of the produce.  Medium size is N18, 000. Traders have attributed the price decrease to change in season. According to them, new and fresh tomatoes are out now; there are no pests spoiling tomato like it used to be when the rain was very heavy in the north. Consumers can now get the item for which they previously paid between N300 and N500 for between N50 and N100 respectively. An average bag sells for N6, 000 at Mushin market.

    A pepper seller at Mile 12, Mallam Oseni Usman, who confirmed the fall in prices of ingredients, attributed the development to the season, adding that farmers are no longer afraid to cultivate new crops. Another trader also attributed this drastic development to seasonal changes.

    At Mile 12 market, Mrs. Bimpe Olowu, a tomato seller said: “The price of these tomatoes change based on the season because it is not a stable market. These are perishable goods. The price of tomato will continue to be unstable because it is a seasonal good.”

    The price of melon also known as Egusi has gone down because of its seasonal nature.  A derica of melon seed sells for N300; N1,200 for plastic and N39,000 for a bag. Mr. Amos Osai, a melon seed seller simply said “The price came down because this is the season for it,” he told The Nation Shopping.

    Traders at Ojuwoye market, Mushin attributed the former price increase to the rain. “Whenever it is rainy season, tomato and pepper would be very expensive or relatively out of stock. Before now, a basket was N30, 000 for tomato and N16, 000, N20, 000 for pepper from Mile12 Market, it has reduced to,” the trader said.

    Expressing joy, a seller of the produce, Mrs. Silifat Kunle said, it is a good thing the price of tomato and pepper reduced because her customers had resolved to patronising tin tomato and dried grinded pepper sellers, popularly known as ‘Ata-gungun’, trying to safe cost.

    On the other hand, a palm oil seller, Adam Umar said the price of item he sells has increased with five litres of groundnut oil now selling for N1,200 against the former N1, 000. Palm oil has also increased by 20per cent but like his colleague,he is optimistic that the price would reduce soon.

    In recent times, beans has been the most expensive and consumers have not stopped lamenting due to its unstable price-especially those brought in from the northern part of the country. Mrs Adenike Taiwo, who sells beans in small and large quantities at Daleko market in Iyana-Isolo, Lagos, complained that a bag of Oloyin beans which used to cost N12, 500 is now N13, 500.  At Mile-12 market also in Lagos, a beans seller, Nwode Friday, blamed the hike in the price on the government. “A bag of Oloyin beans which formerly cost N12,000 and N12, 500 has now soared to N13, 500. Also, a Derica priced at N180 now costs N200”, he said.

    For onions, the price remained the same; a bag sells for N14, 000, while other small quantities go for N1, 000 and N500 respectively.

    The price of rice has also gone down. A bag which formerly cost N9,000 now goes for N8, 600. The reason for this is unknown by traders as they believe it is just a normal happening in the market.

  • Food prices soar as Ramadan begins

    Food prices soar as Ramadan begins

    The holy month of Ramadan is here once again. Muslim faithful across the world will observe the fasting period. To prepare adequately for this holy month, they are expected to visit the market to stock their homes with staple food items. Many of them will, however, be constrained by the sharp increase in the general prices of goods and shortage of others, TONIA ‘DIYAN reports

    The last one month has seen prices of staple food items in Lagos markets go up, particularly tomatoes and pepper which have become significantly out of stock since traders finished selling their old stock. The scarcity and hike in the price of staple foods, farmers from the north says can be attributed to high cost of transportation occasioned by the lingering fuel scarcity and off season period for perishable food items.

    Visits to some major markets in Lagos where these items are sold in large quantities showed that prices of items such as tomatoes, pepper, chilli pepper and others have moved up sharply without any likelihood of coming down any time soon.

    At the popular Mile 12 and Mushin Markets, a big basket of tomatoes, which used to sell for N15, 000 now sells for N30, 000. A medium-size basket of fresh pepper (tatashe) now costs N12, 000 from N11, 000. A basket of chili pepper (rodo) now goes for N20, 000.00 against the N13, 000. The price of a jute bag of onions also increased from N7, 500 last week to N8, 000.  A 20-litre keg of vegetable oil goes for N6, 300 against N6, 200, while a measurement of garri (known as Kongo in local parlance) still remains at N300. The various brands of 50-kilogramme bag of rice range from N7, 000 to N12, 000. A 120-kilogramme bag of beans costs N26, 000 from N24, 500 it was sold before.  A tuber of yam is now N600 as against N400 it was a few weeks ago.

    At Daleko Market, a 25kg brand of Mama Gold rice goes for N5,000, 50kg-N10,00, Royal Stallion N7,800  Elephant Gold-N7,500 and Union Stallion-N7,500.

    Commenting on this development, the  leader of the tomato depot at Mile 12 Market, Mr. Muhammed Shittu, blamed the increase in prices on the rainy season and attack of insects.

    He said:  “The rain is at its peak now and its hindering the growth of tomatoes. Even when it eventually grows, it would be eaten up by insects and would not be suitable for consumption.”

    Spokesman for Mile 12 Traders Association, Mr Femi Odusanya, urged the Federal Government to invest more in the agriculture sector by establishing mechanised farms. “Government needs to invest more in mechanised farming because most of the food items in the markets are cultivated by peasant farmers. Most of these farmers have just little farm lands and lack the resources for large plantation. Mechanised farming will make farm produce to be available in large quantities, even during off-seasons while prices will not be this high.

    “Until the government does the right thing by shifting attention to agriculture, the citizens will continue to groan under the pressure of costly food items.”

    Alhaji Mohammed Tijani, a beans seller, attributed the high price of beans to ongoing planting season and increased demand for the Ramadan.

    “Price of beans keeps increasing because of its high demand beacuse of the Ramadan period. A lot of families are purchasing it for the purpose of making ‘moi-moi’ or akara’’ after breaking their fast in the evening. More so, there is reduced supply of beans to the market because farmers are not harvesting but planting now.”

  • Staple food prices go up

    The prices of staple food items have either increased or remained at their exorbitant rates. A bag of Aroso rice cost N9, 000, Agric rice, N8, 500, a bowl of garri is N300 and N400; these prices haven’t changed since December.

    Beans is N15,500 per bag; a carton of frozen turkey is N7,000, a frozen foods retailer at Ayobo, a Lagos surburb, Mrs. Ifomma Eze, said.

    It costs between N 7,600 and N8,000 for a carton of chicken; earlier, it was between  N4,500 and N6,000 for the small and big cartons.

    A tomato seller at Mile 12 market, Miss Joy Kalu, said a basket of the item that used to be N5,000 is now N8,000, attributing the increase to high cost of transporting the item and the insecurity the North.

    It is not a different scenario at Agege market. A bag of 25kg-Mama Gold rice is N6,000 and N11,000 for 50kg bag; a bag of tomatoes rice costs N 9,000, Royal Cow rice bag goes for N10,500, Special Rice bag, which used to sell for  N10,000, now costs N11,000. And for beans, the price goes for between N15, 500 and  N16,000. Also at the Agege market, a basket of tomatoes, which was sold for N4,500 before, sells for N8,500 now. At Mile 12 market in Kosofe Local Government Area of Lagos, a bag of onions was N6,200, now it costs  N8,000.

    Traders said the hike in the price of this staple item as well as others is as a result of the elections and  insecurity in the North.

    A bag of Chili pepper, popularly known as dried pepper,  cost N25,000, now it is N27,000. This is attributed to scarcity of pepper at the Arewa market where it is transported from.

    “The price of red oil remains the same; it sells for N6,000 and N6,200.  A 25-litre of Vegetable oil is N6,200, a five-litre goes for N1,300.

    At Oshodi Market, a carton of tin tomatoes goes for N1,800 and N1, 700.

    A bag of rice, which use to be N9,500 or N10,000 is now between N11,200 and N11,500. The increase, it was learnt, was as a result of import duties and exchange rate.

     

  • Staple food prices go up

    The prices of staple food items have either increased or remained at their exhorbitant rates. A bag of Aroso rice cost N9, 000, Agric rice, N8, 500, a bowl of garri is N300 and N400; these prices haven’t changed since December.

    Beans is N15,500 per bag; a carton of frozen turkey is N7,000, a frozen foods retailer at Ayobo, a Lagos surburb, Mrs. Ifomma Eze, said.

    It costs between N 7,600 and N8,000 for a carton of chicken; earlier, it was between  N4,500 and N6,000 for the small and big cartons.

    A tomato seller at Mile 12 market, Miss Joy Kalu, said a basket of the item that used to be N5,000 is now N8,000, attributing the increase to high cost of transporting the item and the insecurity the North.

    It is not a different scenario at Agege market. A bag of 25kg-Mama Gold rice is N6,000 and N11,000 for 50kg bag; a bag of tomatoes rice costs N 9,000, Royal Cow rice bag goes for N10,500, Special Rice bag, which used to sell for  N10,000, now costs N11,000. And for beans, the price goes for between N15, 500 and  N16,000. Also at the Agege market, a basket of tomatoes, which was sold for N4,500 before, sells for N8,500 now. At Mile 12 market in Kosofe Local Government Area of Lagos, a bag of onions was N6,200, now it costs  N8,000.

    Traders said the hike in the price of this staple item as well as others is as a result of the elections and  insecurity in the North.

    A bag of Chili pepper, popularly known as dried pepper,  cost N25,000, now it is N27,000. This is attributed to scarcity of pepper at the Arewa market where it is transported from.

    “The price of red oil remains the same; it sells for N6,000 and N6,200.  A 25-litre of Vegetable oil is N6,200, a five-litre goes for N1,300.

    At Oshodi Market, a carton of tin tomatoes goes for N1,800 and N1, 700.

    A bag of rice, which use to be N9,500 or N10,000 is now between N11,200 and N11,500. The increase, it was learnt, was as a result of import duties and exchange rate.

  • Fed Govt prepares for further crash in crude oil prices

    Fed Govt prepares for further crash in crude oil prices

    The Federal Government  has prepared additional measures to cushion the impact of the continuos fall in the price of crude oil and its effect on the economy, the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, has said.

    Mrs. Okonjo-Iweala, who spoke yesterday in Abuja at the Launch of the Action 2015 program, where she had a dialogue with school children of 15 years of age.

    She denied claims that the Medium Term Expenditure Framework (MTEF) has been withdrawn from the National Assembly.

    “Let me just tell you that measures are being put in place so that we can manage the budget and the economy at whatever the oil price bottoms out. Right now no one knows the bottom because it’s falling everyday. Once it stabilises and we know the bottom, we will accompany it with appropriate measures. So we are working everyday with scenarios, we are following exactly the plan we told Nigerians.”

    She added that government has different scenarios for $55, $50 per barrel price of oil “and below that of the additional measures that will be needed and I believe that though this will be a very difficult year for the country, we have the tools, we know how to apply them and we know that working together, we will be able to take this country through this year and then to a brighter 2016.”

    The minister did not give details of the additional measures being planned, but indicated that 2015 would be a very difficult year for the economy, but with appropriate fiscal and monetary policy instruments, the government  “would manage the economy in a manner that would be beneficial to all.”

    Okonjo-Iweala noted that since the budget was submitted to the National Assembly, the government was monitoring developments in crude oil prices so as to come up with appropriate measures once the decline “bottoms out.”

    To assist the poor to cushion the impact of the difficult times, the Minister said government is building a platform on which it would assist those at the bottom of the pyramid.

    “We are doing something that is technological which is trying to give every Nigerian a smart-card and their generation will be the one to mostly appreciate this.

    “It will enable us to target those at the very bottom once they have a card to be able to help them with some assistance that can assure basic health care and their children being in school through a conditional cash transfer program, adding that the program is being put together by the  President.

    She explained that ‘Action 2015’ is an international movement to call for more attention in the area of fighting corruption, inequality and climate change, and it is based on the belief that 2015 can be a pivotal year that will change the future.

  • Declining food prices ‘very good’

    Declining food prices ‘very good’

    The United Nations Food and Agricultural Organization’s (FAO) monthly food price index was stable in October, as sugar and vegetable oil prices rose to offset declines in dairy and meat prices, the Rome-based agency reported today.

    The FAO Food Price Index is a trade-weighted index monitoring five commodity group price indices – cereals, meat, dairy products, vegetable oils, and sugar. In October, it dipped to 192.3, technically its seventh consecutive monthly decline, but a marginal 0.2 percent drop from the revised September figure.

    The ongoing slight decline in the index is “very good for food importing countries,” FAO senior economist Concepción Calpe said in a statement.

    Dairy prices fell by 1.9 percent, as butter and milk powder prices dipped due to increased output in Europe, where many producers are grappling with Russia’s ban on cheese imports. The sub-index for dairy products dropped to 184.3, down 3.5 points from September, and 66.8 points, or 26.6 percent down from October 2013.