The basis was taken the average price of the 5 major types of products – grains, meat, dairy products, vegetable oils and sugar. The average price index on them was 161,6 points. This is below the average level of 2015. Cheaper meat, milk and cereals, the other two products are slightly more expensive.

Cheaper grains due to the high harvest in Russia, Canada and Australia. Most actively reduced the price of wheat, which is an important export commodity in all three countries, says the analyst of the Russian agricultural Agency Artem Fedorov.

The price of milk has fallen by 4% from November, or almost up to 192 points. Growth occurred only at a part of cheese, dry whole milk and butter, and the price of nonfat dry milk has not changed. This was influenced by growing demand for dairy products on the world market, including the EU and Oceania as well as limited production. Of meat products shed poultry and beef. General average prices of meat dropped by 1.1% to 161.5 points. The reason was market conditions that affected the prices of imported meat demand.

The price index for sugar increased by 34.2% from 2015 or until 255,9 points amid falling offers in India, Brazil and Thailand. In December the price of sugar fell by 8.6% or 24.6 points from November and amounted to 262.6 points. This is due to the further weakening of the Brazilian real to the U.S. dollar, and, as a consequence, the growth of exports from Latin American countries. Prices also fell after the forecast about the growth of sugar production in the 2016-2017 year in the major centres of production – the Central and southern regions of the country.

Prices for vegetable oil increased by 11.4% and amounted to more than 200 points. In December, they totaled 183 points, or 4.2% higher last month. Stable growth is associated with growing demand in tropical countries for soybean and palm oil for diesel production and a reduction in the harvest in these countries due to the natural phenomenon El niño.

In General, the FAO predicts that this year is not expected stable prices for food commodities. According to experts, is due to fluctuations in foreign currency exchange rates, the effects of sanctions and other economic factors.