International food commodity prices rose in 2025, ending two consecutive years of decline, according to a report released by the Food and Agriculture Organization of the United Nations (FAO) on January 9.
The FAO Food Price Index, which tracks international prices of cereals, vegetable oils, meat, sugar, and dairy products, averaged 127.2 points in 2025, up from 122 points recorded in 2024. The level represents the third-highest average since 2008.
The increase marked a reversal in the downward trend in global food prices that followed the sharp spikes triggered by the 2022 Russian invasion of Ukraine. While prices of sugar and cereals fell to their lowest levels since 2020 due to abundant global supplies, the declines were outweighed by sharp increases in other food commodities.
According to the Rome-based agency, the vegetable oil price index climbed to 161.6 points, representing a 17.1 per cent increase compared to 2024. The rise was largely driven by uncertainty over global palm oil supply in Southeast Asia.
Prices of dairy products and meat also reached new highs during the year. The dairy index stood at 146.9 points, its second-highest level since 2008, while the meat index hit a record 123.2 points.
FAO attributed the increase in dairy prices to strong import demand combined with limited exportable supplies early in the year. For meat, sustained global demand, coupled with concerns over animal diseases and ongoing geopolitical tensions, contributed to higher prices.
The agency warned that rising food prices could further strain trade balances for net food-importing countries. In Sub-Saharan Africa, vegetable oils remain the second most imported food category after cereals, making the region particularly vulnerable to price increases.
Looking ahead, analysts expect price pressures to persist in 2026, especially for vegetable oils. Market participants are expected to closely monitor public policy developments, including biofuel support programmes in Asia, which could continue to influence the availability of oilseeds.
In contrast, cereal prices are likely to remain relatively subdued due to ample global stocks. FAO previously forecast global grain production for the 2025/2026 season at a record 2.925 billion tonnes, a level expected to help stabilise prices in the cereal market.
