FAO Index Drops in September: Dairy and Sugar Drive the Decline
Sourse: dairynews.today
In September 2025, the FAO Food Price Index averaged 128.8 points, a slight decline from the revised 129.7 points in August. This drop is primarily due to falling prices in dairy and sugar, offsetting gains in meat.
The dairy sector was particularly affected with the dairy products index standing at 148.3 points, marking a 2.6% monthly decrease and the third consecutive month of decline. Within the sub-indices, butter fell by 7%, skim milk powder by 4.3%, and whole milk powder by 3.1%, whereas cheese saw a lighter decline.
The fall in dairy prices is attributed mainly to increased seasonal butterfat availability in the northern hemisphere, boosting butter production, and higher production expectations in Oceania, putting pressure on international markets.
Annually, the FAO food index remains 3.4% higher than September 2024, yet stands 19.6% below its peak in March 2022.
This pricing trend poses challenges for the global dairy industry, potentially impacting margins for exporting producers and requiring adjustments in production chains. Future supply forecasts and intensifying competition among exporting countries are expected to influence dairy sector strategies.
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