Global food commodity prices increased in 2025, ending two straight years of decline, according to a report released by the Food and Agriculture Organization of the United Nations on January 9.
The FAO Food Price Index, which measures international prices of cereals, vegetable oils, meat, sugar and dairy products, averaged 127.2 points in 2025, up from 122 points the previous year.
The level marked the third highest reading since 2008 and signalled a pause in the downward trend that followed price spikes triggered by the 2022 Russian invasion of Ukraine, as seen on Ecofin Agency.
While sugar and cereal price indices fell to their lowest levels since 2020 due to ample global supplies, these declines were not enough to offset strong increases in other food categories.
The Rome-based agency said the vegetable oil price index rose sharply to 161.6 points, representing a 17.1 percent increase from 2024. The rise was largely driven by uncertainty over global palm oil supply, particularly in Southeast Asia.
Prices for dairy products and meat also climbed to new highs. The dairy index reached 146.9 points, its second-highest level since 2008, while the meat index hit a record 123.2 points.
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For dairy products, the increase was attributed to strong import demand alongside limited export supplies early in the year. Meat prices were supported by sustained global demand, combined with uncertainty linked to animal diseases and ongoing geopolitical tensions.
These developments have intensified pressure on trade balances in net food-importing countries. In Sub-Saharan Africa, vegetable oils remain the second most imported food category after cereals.
Looking ahead, analysts expect price pressures to persist, especially for vegetable oils. Markets are likely to closely track policy developments, including biofuel support measures in Asia, which could continue to influence oilseed availability.
In contrast, cereal prices are expected to remain relatively subdued due to large global inventories. The FAO said in July that global grain production for the 2025/2026 season is forecast at a record 2.925 billion tonnes.
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