Forecasts for cereal prices in the food sector for 2024 and 2025 present differing trends. Analysts predict a decrease in prices for cereals, oils, and flours in 2024, with other food categories likely seeing price hikes. Conversely, a general decline in food prices is expected in 2025.
The grain price index is set to drop by 11% in 2024, mainly due to ample global grain supplies. Specifically, wheat prices are forecasted to decrease by 15% in 2024, supported by increased production, and an additional 2% decline is projected for 2025.
Factors influencing these projections include robust export competition, a minor uptick in production, a rise in consumption, and the lowest end-of-season stocks to utilization ratio in eight years.
Global corn production is anticipated to reach a record high in the 2023-2024 seasons, while global rice production is expected to remain steady, resulting in the lowest stocks-to-use ratio in three years.
Moreover, rice prices are foreseen to climb by 8% in 2024 compared to the previous year due to constrained global markets and export restrictions imposed by India.
Despite the global expectation of a decrease in food prices, the impact on the Ghanaian food market and overall food security in the country is uncertain.
Contrary to global trends, food inflation in Ghana rose from 27.0% in February to 29.6% in March 2024. This surge could be attributed to factors such as price fluctuations in global markets, local production costs, and other internal economic elements.
In conclusion, the forecasted trends in grain and food prices in the upcoming years are a blend of global outlooks and local influences shaping the international and domestic food landscapes. It is imperative to vigilantly monitor these developments to comprehend their implications on the economic and social stability of the countries involved.