Global food commodity prices fell slightly in September, according to the United Nations’ Food and Agriculture Organization (FAO), as steep declines in sugar and dairy countered a surge in meat prices.
The FAO Food Price Index, which measures a basket of staple commodities, averaged 128.8 points in September, down from 129.7 in August. While the index is still 3.4% higher year-on-year, it remains almost 20% below the record set in March 2022 after Russia’s invasion of Ukraine.
The largest decline came from sugar, which dropped 4.1% to its lowest level since March 2021. The fall was driven by stronger-than-expected production in Brazil and improved harvests in India and Thailand. Dairy prices also fell by 2.6%, mainly due to a sharp decline in butter prices amid rising output in Oceania.
Cereal prices eased by 0.6%, with wheat prices falling for the third month in a row thanks to bumper harvests and weaker global demand. Maize and rice also saw declines, pressured by lower import demand and favorable export policies.
Vegetable oil prices dropped 0.7%, balancing out decreases in palm and soybean oil against gains for sunflower and rapeseed oils.
In contrast, the meat price index hit a record high, rising 0.7%, with beef costs climbing to new peaks amid strong U.S. demand and limited domestic supply.
Looking ahead, the FAO revised its 2025 global cereal production forecast upward to 2.971 billion metric tons, the largest annual increase since 2013, fueled by higher expectations for wheat, maize, and rice.
