FAO Food Price Index Sees Significant Increase Driven by Sugar, Dairy, and Oil

The benchmark for world food commodity prices recorded an uptick in February 2025, propelled by increased prices in sugar, dairy, and vegetable oils. The Food and Agriculture Organization of the United Nations (FAO) Food Price Index averaged 127.1 points, a 1.6% rise from January. Although the meat price index remained stable, all other indices saw increases. Significantly, the index is 8% higher compared to the previous year but still 21% below the peak of March 2022.

The FAO Cereal Price Index showed a modest increase, driven by tighter supplies in Russia and concerns over crop conditions in Europe, Russia, and the US. Meanwhile, the global prices for maize continued their upward trend due to limited supplies in Brazil and Argentina, alongside strong US export demand. Conversely, rice prices declined owing to ample supplies and weak demand.

Vegetable oil prices climbed 2%, mainly supported by price rises across palm, rapeseed, soy, and sunflower oils, with international palm oil prices recovering from a brief January dip.

For dairy, the index rose 4%, with notable increases in cheese and whole milk powder prices, spurred by high global demand and offset by seasonal declines in Oceania’s production. Butter and skim milk powder prices also witnessed increases.

In the meat sector, the index slightly decreased but remained above last year’s level. Bovine meat prices were up due to demand in the US but offset by ample Brazilian supply. Poultry and pig meat prices softened due to high availability, especially from Brazil.

Sugar prices escalated by 6.6% driven by concerns of tight global supplies for the upcoming season.