FAO: Global Food Prices Rise by 4.3% in 2025
By the end of the year, the average value of the FAO Food Price Index was 127.2 points, which is 5.2 points higher than the 2024 level. However, in December 2025, the index decreased by 0.6% compared to November, mainly due to cheaper dairy products, meat, and vegetable oils. In annual terms, the December figure was 2.3% lower, and 22.4% lower compared to the peak level of March 2022.
Dairy Products
The Dairy Price Index decreased by 4.4% in December. Butter prices fell significantly amid seasonal growth in cream supply in Europe. Whole milk powder prices decreased due to peak seasonal production in Oceania and weakened demand from key importers.
For 2025, the Dairy Price Index rose by 13.2%, mainly due to a sharp increase in prices in the first half of the year.
Cereals
The Cereal Price Index increased by 1.7% in December compared to November. Wheat prices were supported by concerns about possible export disruptions from the Black Sea region. Corn price growth was driven by sustained export demand and active ethanol production in Brazil and the United States.
Meanwhile, for 2025, the Cereal Price Index decreased by 4.9%, reaching the lowest annual average level since 2020.
Vegetable Oils
In December, the Vegetable Oil Price Index decreased by 0.2%, reaching its lowest level in six months. The decline in soybean, rapeseed, and sunflower oil prices offset the rise in palm oil prices. Sunflower oil prices fell for the second consecutive month amid weak global import demand.
For the year, vegetable oil prices increased by 17.1%, reaching their highest levels in three years due to limited global supply.
Meat
The FAO Meat Price Index decreased by 1.3% in December compared to November. Declines were recorded across all categories, most notably for beef and poultry, driven by significant export volumes and weakened import demand.
In annual terms, the Meat Price Index increased by 5.1%, which FAO attributes to sustained global import demand, risks associated with animal disease outbreaks, and ongoing geopolitical uncertainty.
Sugar
In December, the Sugar Price Index rose by 2.4% after three months of declines. However, in annual terms, December prices were 24% lower.
For 2025, the Sugar Price Index decreased by 17%, reaching its lowest level since 2020. The main factor was the ample supply of sugar on the global export market.
