FAO Food Price Index Increases To 130.1 Points In July 2025 Driven By Meat And Vegetable Oil Prices

The FAO Food Price Index, a key measure of global food commodity prices, reached 130.1 points in July 2025. This marks a 1.6% increase from June, primarily due to higher international meat and vegetable oil prices. Despite this rise, the index is still 18.8% below its peak in March 2022 but remains 7.6% above its level in July 2024.

In July, the FAO Vegetable Oil Price Index saw a significant increase of 7.1%, reaching a three-year high at 166.8 points. This surge was driven by higher prices for palm, soy, and sunflower oils. Palm oil prices rose due to strong global demand and improved competitiveness, while soy oil benefited from expected firm biofuel sector demand in the Americas. Sunflower oil prices increased because of tightening export supplies in the Black Sea region.

The FAO Meat Price Index also rose to an all-time high of 127.3 points, up by 1.2% from June. The increase was mainly due to higher bovine and ovine meat prices, supported by strong import demand from China and the United States. Poultry meat prices experienced a slight rise as Brazil regained its avian influenza-free status, allowing resumed imports from key partners.

The FAO Cereal Price Index averaged 106.5 points in July, reflecting a decrease of 0.8% from June. This decline was attributed to falling wheat and sorghum prices, which outweighed increases in maize and barley costs. Fresh seasonal wheat harvests in the northern hemisphere contributed to downward pressure on prices, although adverse conditions for spring wheat in parts of northern America provided some support.

The FAO Dairy Price Index decreased slightly by 0.1% from June to reach 155.3 points, marking its first decline since April 2024. Butter and milk powder prices fell due to abundant export supplies and weak import demand, particularly from Asia. However, cheese prices continued to climb because of strong demand in Asian and Near East markets alongside limited export availability in the European Union.

Sugar Prices Continue Downward Trend

The FAO Sugar Price Index averaged 103.3 points in July, down by 0.2% from the previous month, continuing its downward trend for the fifth consecutive month.

Meanwhile, rapeseed oil prices declined with new crop supplies arriving in Europe.

Pig meat prices fell due to ample supplies and reduced global demand, especially within the European Union.

The FAO All Rice Price Index dropped by 1.8%, influenced by plentiful export supplies and weak import demand.

With inputs from WAM