FAO Food Price Index: Rise in Dairy and Meat Prices Offsets Decline in Grain and Sugar in July

Dairy Products

The global dairy sector is generally moving towards growth, showing positive dynamics. According to a report by CLAL.it for the first half of 2025, global milk production has shown an increase in collection volumes in most major dairy regions. This growth, although not explosive, provides stability and optimism for the industry.

Europe and North America: In the European Union, a slight improvement in indicators has been noted, mainly due to Poland and Ireland, despite a decline in production in Germany. The USA maintains production volumes by increasing animal productivity.

Oceania: New Zealand and Australia are showing signs of recovery in dairy production, which is important for the global market.

South America: Argentina and Brazil are showing stable and significant growth in milk production, strengthening their positions as key suppliers.

Cereals

The Cereal Price Index decreased by 0.8% compared to June and by 3.8% compared to July 2024. The increase in global export prices for barley and corn was offset by a decrease in prices for sorghum and wheat. Favorable seasonal supply in the Northern Hemisphere exerted downward pressure on prices. However, less favorable weather conditions for spring wheat ripening in North America and limited supply from Europe and the Black Sea region prevented further price declines. The rise in corn prices is explained by low farm activity, drought in Eastern Europe, and reduced export supplies from Argentina and Brazil.

Vegetable Oils

The Vegetable Oil Price Index reached a three-year high, increasing by 7.1% compared to the previous month. The main contributors to this growth were palm, soybean, and sunflower oils, while rapeseed oil prices slightly decreased. The rise in palm oil prices was due to sustained global import demand. Expected demand from the biofuel sector in America contributed to the increase in soybean oil prices, and seasonal reductions in supplies from the Black Sea region led to a rise in sunflower oil prices.

Sugar

The Sugar Price Index continued its downward trend, recording the fifth consecutive monthly decline. In July, the decline was 0.2%. Forecasts indicate the potential recovery of global sugar production in the 2025–2026 season. Active global import demand prevented prices from falling more significantly.

Meat

The Meat Price Index set a new record, increasing by 1.2% compared to June and by 6.0% compared to July 2024. Record beef prices are due to high quotations in Australia and increased import demand from China and the USA. A slight rise in poultry prices is associated with increased export prices in Brazil. The decline in pork prices is explained by reduced quotations in the EU amid high domestic supply and declining global demand.