Food and Agriculture Organization (FAO)

The Food and Agriculture Organization (FAO) is a specialized agency of the United Nations, established in October 1945. With its headquarters located in Rome, Italy, the FAO operates globally, extending its mission across more than 130 countries. The organization is committed to leading 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 monitors monthly changes in international prices of a basket of food commodities, including dairy products. As of November 2024, the FFPI was at 127.5 points, with increases to 127.7 points in May 2025, 128.0 points in June 2025, and reaching 130.1 points by August 2025. However, a decrease was noted in September 2025, mainly due to reduced prices in dairy and sugar. In October 2025, the FAO Dairy Price Index saw a 3.4% decrease.

Significant Events

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

Company Plans and Outlook

In response to these challenges, FAO is implementing strategic initiatives aimed at stabilizing food prices and bolstering global food security. The organization collaborates with international partners to enhance agricultural productivity, reduce food waste, and adapt to climate change. FAO is focused on strengthening local supply chains to mitigate future price fluctuations.

Future Engagements

FAO continues to engage in conferences with UN representatives and leading agricultural researchers to address international food security challenges. The organization emphasizes investing in the development of human resources within the dairy sector, aligning with its broader goals. Utilizing its convening power, FAO facilitates dialogue among 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 participates in global forums like the FAO Global Conference on Sustainable Livestock Transformation 2025. FAO forecasts a moderate recovery in global milk production in 2025, with an anticipated increase of 1.4% compared to 1.1% the previous year. The organization has reported on reduced milk yields and increased prices for skimmed milk, cheese, and butter.

The FAO Global Conference for Action in One Health for Agrifood Systems in Rome brings together stakeholders to consider practical ways to integrate One Health principles into food and agricultural systems, covering topics like food security, livestock productivity, resilience, sustainability, and health challenges.