Rome: Global food commodity prices experienced a decline in September as reductions in sugar and dairy prices counterbalanced a new high for meat prices, the United Nations’ Food and Agriculture Organization (FAO) reported on Friday. The FAO Food Price Index, which monitors a basket of internationally traded food commodities, recorded an average of 128.8 points in September, a decrease from a revised 129.7 points in August.
According to Radio Television Brunei, the index showed a 3.4% increase compared to the same month last year, though it remains nearly 20% below the record level seen in March 2022 following Russia’s full-scale invasion of Ukraine. The indicator, which had climbed to a two-year peak in July before stabilizing in August, was curtailed last month by a 4.1% drop in FAO’s sugar price index, reaching its lowest since March 2021.
The decline in sugar prices was attributed to an improved supply outlook, with higher than expected production in Brazil and favorable harvest prospects in India and T
hailand, FAO stated. The agency’s dairy price index also saw a 2.6% month-on-month decrease, driven by a sharp fall in butter prices amid increased production prospects in Oceania.
FAO’s cereal benchmark experienced a 0.6% decline from August, with wheat prices decreasing for the third consecutive month due to large harvests and subdued international demand. Maize prices also fell, partly influenced by a temporary suspension of export taxes in Argentina. The agency’s rice index reflected a monthly drop as reduced orders from buyers in the Philippines and Africa exerted pressure.
Vegetable oil prices decreased by 0.7% as reductions in palm and soybean oil quotations countered increases in sunflower and rapeseed oil. Conversely, FAO’s meat price indicator rose by 0.7% to a new record high, driven by increased beef and sheep meat quotations. Beef prices reached a new peak, supported by strong demand in the U.S. amid limited domestic supply.
In a separate report, the FAO increased its forecast for global cerea
l production in 2025 to 2.971 billion metric tons, up from 2.961 billion tons projected last month. This latest outlook represents a 3.8% increase from 2024 output, marking the largest annual rise since 2013, attributed to higher production prospects for wheat, maize, and rice.