FAO: Global food prices are falling again

The FAO Food Price Index remains 6% higher than in May last year but is still 20.3% below the record peak of March 2022.

Dairy Products:
The dairy price index rose by 0.8% to 153.5 points, which is 21.5% higher than a year ago. The increase was supported by strong demand for butter, cheese, and whole milk powder, particularly in Asia and the Middle East. The only decline was seen in skimmed milk powder prices (-0.2%), due to increased exports from producing countries.

Cereals:
The cereal price index fell by 1.8% to 109 points, marking an 8.2% decrease compared to May 2024. The main factor was a sharp drop in maize prices, driven by active harvesting in Argentina and Brazil and expectations of a record crop in the United States. Prices for sorghum, barley, and wheat also declined due to weak demand and improved weather conditions in the Northern Hemisphere. Rice was the exception, rising by 1.4% due to steady demand and stronger currencies in exporting countries.

Vegetable Oils:
The global vegetable oil index dropped by 3.7% to 152.2 points, mainly due to falling prices of palm, soybean, rapeseed, and sunflower oils. Contributing factors included increased production in Southeast Asia, reduced demand for biofuels in the U.S., and expectations of a good harvest in the EU.

Meat:
Meat prices increased by 1.3% to 124.6 points. The rise was driven by higher prices for beef, lamb, and pork, especially amid Germany’s regained export status and strong demand from China and the Middle East. In contrast, poultry prices declined due to import restrictions on Brazilian meat following an avian flu outbreak.

Sugar:
Sugar prices fell for the third consecutive month—down 2.6% to 109.4 points. The decline was attributed to weakening global demand amid economic uncertainty and expectations of higher production in India and Thailand for the 2025/26 season, supported by an early monsoon.