FAO reports April surge in cereal, dairy, and meat prices

The Food and Agriculture Organization (FAO) reported a rise in the FAO Food Price Index (FFPI) to 128.3 points in April 2025, a 1% increase from March. Major contributors to this surge were cereals, dairy, and meat, outweighing drops in sugar and vegetable oil prices. The index remains 7.6% higher than the previous year, although still 19.9% below its March 2022 peak.

Breaking down the components, the FAO Cereal Price Index rose by 1.2% to 111.0 points. This was driven by tight wheat supplies from the Russian Federation and currency movements. The index decreased slightly compared to last year. Additionally, changes in U.S. import tariffs and seasonal stock levels influenced maize prices.

The FAO Vegetable Oil Price Index fell 2.3% due to lower palm oil prices, despite increases in soy and rapeseed oils. Palm oil exports recovered, influencing the decline.

Meanwhile, the FAO Meat Price Index grew by 3.2% to 121.6 points, with significant increases in pig meat linked to renewed import demand in the EU. Bovine and ovine meat prices also rose due to demand pressures.

In dairy, the FAO Dairy Price Index reached 152.1 points, up 2.4% from March. Notably, butter prices hit a record high, influenced by reduced inventories in Europe. Rising demand for milk powders and cheese drove further increases.

Conversely, the FAO Sugar Price Index dropped by 3.5% amid economic concerns and high Brazilian outputs, compounded by currency devaluations and lower crude oil prices.