Global Food Import Costs Surge, Driven by Rising Cocoa, Coffee, and Tea Prices, According to FAO

The Food and Agriculture Organization (FAO) of the United Nations has released its latest Food Outlook report, projecting that the global food import bill will surpass $2 trillion in 2024, marking a 2.2% increase from the previous year. This rise is primarily driven by higher prices for commodities like cocoa, coffee, and tea, alongside increased import expenses for fruits and vegetables.

According to the report, spending on cocoa, coffee, and tea imports is expected to surge by 22.9%, accounting for over half of the total increase in value terms. The FAO attributes this spike to soaring international prices, largely influenced by adverse weather conditions and logistical challenges. Earlier this year, cocoa prices approached nearly four times their ten-year average, while coffee prices nearly doubled and tea prices climbed 15% above their usual long-term levels.

The FAO highlighted that exports of cocoa, coffee, and tea are crucial to the economies of many countries. For instance, revenue from coffee exports in Burundi and Ethiopia typically covers nearly 40% of their food import costs. In Sri Lanka, tea exports account for more than half of the country’s food import expenditures, while cocoa exports in Côte d’Ivoire more than offset the nation’s entire food import bill.

In contrast, decreasing import costs for cereals and oilseeds are providing some financial relief to lower-income countries. The report notes that high-income countries, which represent two-thirds of the global food import bill, are expected to see a 4.4% increase in 2024. Conversely, food import costs for upper-middle-income, lower-middle-income, and low-income nations are likely to decrease.

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