Food prices fall globally

thedailymorningsun.com
published 09 June, Monday, 2025 16:00:30
Food prices fall globally

Economic Reporter //


The Food and Agriculture Organization of the United Nations (FAO) said that global food prices fell by 0.8 percent in May, which is significant compared to April. The decline was mainly due to lower prices of vegetable oils, cereals and sugar.

According to the latest FAO Food Price Index, the index stood at 127.7 points in May, down from 128.7 points in April. Although this is 6.0 percent higher than the same period last year, it is still about 20 percent below the peak reached in March 2022 due to the impact of the Ukraine war.

Which products have fallen in price?

Grains: The largest component of the food price index, grain and cereal prices, fell by 1.8 percent in May. The main reasons for this are good corn yields in Argentina and Brazil and reduced global wheat demand. In addition, the prices of sorghum and barley have also fallen.

Vegetable oil: Vegetable oil prices fell by 3.7 percent. Palm oil, rapeseed oil, soybean oil and sunflower oil prices fell due to increased production and lower demand in the United States.

Sugar: Sugar prices fell by 2.6 percent. The prices of these products fell due to reduced demand in the food and beverage processing industry and uncertain global trade conditions.

Which products increased in price?

However, not all products fell in price. Meat and dairy prices rose slightly:

Meat: Meat prices rose by 1.3 percent in May. This trend was seen in the increase in demand for beef, veal and pork. Pork prices rose in particular as the lifting of foot and mouth disease bans in Germany. However, demand for chicken meat fell due to concerns about bird flu.

Dairy products: Dairy prices rose by 0.8 percent. Butter prices are at a record high due to strong demand in Asia, which also helped to increase the prices of cheese and powdered milk.

Rice: Although not affecting the overall index, rice prices rose slightly due to increased demand for Indica rice and the depreciation of the US dollar.

The FAO also forecasts that global cereal production could reach a record level (2.911 billion tonnes) in 2025, 2.1 percent higher than in 2024. This is expected to stabilize the global food supply situation. This price reduction is expected to bring some relief to consumers.

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