Filenews 9 August 2025
Global food prices rose in July to a two-year high due to rising international prices for meat and vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) said on Friday.
The FAO Food Price Index, a benchmark for commodity prices, averaged 130.1 points in July 2025, an increase of 1.6 percent from June, the FAO said.
This is the highest reading since February 2023, although the index was 18.8% below its peak in March 2022, following Russia's full-scale invasion of Ukraine. The rise in meat and vegetable oil prices offset the declines seen in cereals, dairy and sugar, the FAO said.
In meat, increased demand, mainly from Asian markets (China, South Korea) and supply constraints due to epidemics in animal populations (e.g. African swine fever), exerted upward pressure on prices.
The increases in vegetable oils are attributed to the rise in the wholesale price of palm oil and sunflower oil, due to reduced exports from Ukraine and Russia, seasonal delays in harvesting in Indonesia and Malaysia, and an increase in the use of vegetable oils for biofuel production.
On the contrary, prices of cereals were recorded, as the supply of raw materials increased due to large production in South America and Russia. Also, the partial restoration of trade flows through the Black Sea reduced price pressures.
Increases in dairy products were avoided, mainly due to high inventories and reduced demand, mainly from China.
As far as sugar is concerned, increased production is recorded from countries such as India and Brazil, combined with improved weather conditions in producing countries.
