FAO food price index fell further in December

The FAO Food Price Index — which tracks monthly price changes for the most important food commodities in international trade — averaged 124.3 points in December, down 0.6% from November and 2.3% from a year earlier.

In 2025, the index averaged 127.2 points, up 4.3% from the 2024 average. The increase was driven primarily by higher world prices for vegetable oils and dairy products, offsetting lower prices for cereals and sugar.

The FAO Cereal Price Index increased by 1.7% in December compared to November, reflecting concerns about wheat exports from the Black Sea region, buoyant global import demand for maize, strong domestic ethanol production in Brazil and the United States, and price increases across all segments of the rice market. For the full year 2025, the Cereal Price Index averaged 4.9% below its 2024 level, marking a three-year decline and the lowest annual average since 2020. Rice prices remained 35.2% below their 2024 levels, reflecting ample export supplies, fierce competition among exporters, and more subdued purchasing by some Asian importing countries.

The FAO Vegetable Oil Price Index fell 0.2% in December from the previous month, to a six-month low; declines in world soybean, rapeseed and sunflower oil prices outweighed increases in palm oil prices. In 2025, the vegetable oil price index was 17.1% higher on average than the previous year, a three-year high amid tight global supplies.

The FAO Meat Price Index fell 1.3% from its revised November level, but was 3.4% higher than its December 2024 level a year earlier. Prices for all meats fell, especially beef and poultry. The index was 5.1% higher on average in 2025 than in 2024, driven by strong global import demand and increased market uncertainty related to the emergence of animal diseases and geopolitical tensions. Global prices for beef and mutton rose, while those for pork and poultry fell.

The dairy price index fell by 4.4% in December compared to November, mainly due to a significant drop in butter prices, driven by seasonally higher cream supplies in Europe. In 2025, milk prices were 13.2% higher on average than in 2024, reflecting strong global import demand and limited export supply at the beginning of the year.

The FAO Sugar Price Index increased by 2.4% in December compared to the previous month, mainly due to a significant decline in production in Brazil’s key southern growing regions – but was still 24.0% lower than in December 2024. Looking ahead to 2025, the Sugar Price Index was 17.0% lower on average than in the previous year, reaching its lowest annual value since 2020, amid ample export supplies.