The impact of COVID-19 epidemic on economy and logistics results in downturn of numerous commodities demand. In April, the global food price dropped for three consecutive months.

The FAO food price index is used to trace monthly changes in international price of food with the largest routine transaction volume. The average value of the index in April shall be 165.5 points, lower about 3.4% than that in the previous month, and nearly 10% than that in January.

The FAO sugar price index dropped to the lowest point in the past 13 years, lower 14.6% than that in March, while the monthly range of price drop in March is larger.

The FAO dairy product price index dropped 3.6%; the price of butter and milk powder dropped in two digits because of higher export supply volume, high inventory, weak import demands and slack restaurant sales in the northern hemisphere.

The FAO meat price index is 2.7% lower. Some recovered import demands in China are insufficient to offset low import of other regions. In the meantime, main producing countries are trapped in logistic depression, while the quarantine measures lead to sharp declination of demands in the catering service industry.

Upali Galketi Aratchilage, the Senior Economist of FAO, pointed out: “COVID-19 is impacting on meat supply and demands; restaurant shutdown and family income reduction leads to consumption reduction, while short labor force in processing industry affects the just-in-time production system of main livestock raising countries.”