Food and Agriculture Organization (FAO)

The Food and Agriculture Organization (FAO) is a specialized agency of the United Nations, established in October 1945. It is headquartered in Rome, Italy, and has a widespread presence, operating in over 130 countries worldwide. FAO's primary mission is to lead international efforts to defeat hunger, improve nutrition, and enhance global food security.

Financial Indicators

An essential tool used by FAO is the FAO Food Price Index (FFPI), which measures monthly changes in international prices of a basket of food commodities, including dairy products. As of November 2024, the FFPI increased to 127.5 points. By May 2025, it averaged 127.7 points, rose to 128.0 points in June 2025, and reached 130.1 points by August 2025. However, a slight decline was observed in September 2025, primarily due to reduced prices in dairy and sugar. In October 2025, the FAO Dairy Price Index decreased by 3.4%.

Significant Events

Recent fluctuations in the FFPI underscore ongoing challenges within global food supply chains, impacted by geopolitical tensions, climate conditions, and market dynamics. These changes have significant implications for global food security and can potentially increase consumer costs, especially in low-income regions.

Company Plans and Outlook

In response to these challenges, FAO is focusing on strategic plans to stabilize food prices and enhance global food security. Initiatives involve collaborating with international partners to boost agricultural productivity, reduce food waste, and adapt to climate change. FAO aims to strengthen local supply chains to mitigate future price fluctuations.

Future Engagements

FAO continues to engage in conferences with UN representatives and leading agricultural researchers to tackle international food security challenges. The organization emphasizes investing in the development of human resources within the dairy sector, aligning with its broader goals. FAO utilizes its convening power to facilitate dialogue among all stakeholders in the dairy sector. Assistant Director Thanawat Tiensin actively participates in relevant summits, and FAO collaborates with IDF-FIL on the Dairy Sustainability Declaration. The organization has supported the Paris Dairy Declaration on Sustainability and is involved in global forums such as the FAO Global Conference on Sustainable Livestock Transformation 2025.

FAO forecasts a moderate recovery in global milk production in 2025, with an increase of 1.4% compared to 1.1% the previous year.

Modified: 2025/12/07