Global Food Prices Surge as Meat and Vegetable Oils Reach New Highs

The FAO Food Price Index, a key measure of global food commodity costs, rose by 1.6% in July 2025. This increase was mainly attributed to surging international prices for meat and vegetable oils. Yet, the index is still 18.8% below its high in March 2022, though it has risen 7.6% over the past year.

The index, which tracks monthly changes in a variety of food commodities worldwide, showed meat and vegetable oil prices climbing sharply, offsetting drops in the cereal, dairy, and sugar index categories. According to the data, the FAO Cereal Price Index dropped 0.8%, with falling wheat and sorghum prices counteracted by increases in maize and barley. Fresh wheat harvests in the northern hemisphere influenced the market, though challenging conditions in certain areas of North America gave some price support.

Meanwhile, the FAO Vegetable Oil Price Index jumped 7.1%, reaching a three-year peak due to rising palm, soy, and sunflower oil costs. Global demand and strong competitiveness boosted palm oil prices, while soy oil received backing from expected biofuel demand. Sunflower oil faced increased prices as exports tightened in the Black Sea region. Conversely, rapeseed oil prices fell with new European supplies. In the meat sector, the FAO Meat Price Index went up by 1.2%, mainly fueled by high demand for bovine and ovine meat from China and the USA. Poultry prices increased slightly after Brazil's status improvement, whereas pig meat prices fell amid sufficient supplies and weakened demand in the EU. Dairy prices decreased for the first time since April 2024, yet cheese prices rose on strong Asian demand. Sugar prices continued a five-month decline.

(With inputs from agencies.)