Global Food Prices Climb Toward Multi-Year Highs in 2025, Driven by Oils and Meat -FAO

Global Food Price Trends in 2025 (FAO)

Overall Trend

Global food prices rose in 2025, ending two years of decline.

The FAO Food Price Index reached 127.2 points, compared to 122 points in 2024.

This is the third highest level since 2008.

Products Driving the Increase

Vegetable oils: Index at 161.6 points (+17.1% year-on-year), driven by uncertainties surrounding the global supply of palm oil in Southeast Asia.

Dairy products: Index at 146.9 points, the second highest level since 2008, due to strong import demand and limited export capacity.

Meat: Record high of 123.2 points, supported by strong global demand, animal diseases, and geopolitical tensions.

Products in Decline

Cereals and sugar: prices at their lowest levels since 2020, thanks to abundant global supply.

This decline was not enough to offset the increase in other categories.

Economic Impacts

Increased pressure on net food-importing countries.

In sub-Saharan Africa, vegetable oils are the second most imported product category, after cereals.

Outlook

Price pressures could continue, especially for vegetable oils.

Markets will closely monitor biofuel support policies in Asia, which could influence oilseed availability.

High cereal stocks should keep prices relatively low.

2025/2026 cereal production forecast: 2.925 billion tons, a record, according to the Food and Agriculture Organization of the United Nations.

Source: FAO, report of January 9, 2025 — Espoir Olodo