Food & Climate
The average food prices index stabilized in August 2025, as a decline in cereals offset a rise in oils to a three-year high, and meat hit a new record high.
The FAO food price index averaged 130.1 points, down from 130.0 points in July 2025, but remained 30.1 points (18.8%) below its peak in March 2022 (following the outbreak of the Russia-Ukraine war).
Cereal prices averaged 105.6 points, down 0.8 points (0.8%) on a monthly basis and 4.5 points (4.1%) on an annual basis.
World wheat prices declined month-on-month, reflecting ample global supplies and weak import demand, particularly from major buyers in Asia and North Africa.
Overproduction in the European Union and the Russian Federation also negatively impacted prices. In contrast, global maize prices rose for the third consecutive month, driven largely by concerns about the impact of heat waves on crops in the European Union and increased demand for feed use and ethanol production, particularly in the United States.
Among other coarse grains, global sorghum prices declined, while barley prices rose. Meanwhile, the FAO Rice Price Index fell by 2.0% in August 2025, driven by lower indica prices amid continued fierce competition among exporters, according to the organization’s monthly report, which tracks global food prices for a group of major commodities, released today, Friday, September 5, 2025, and obtained by “Food & Climate” platform.
Food prices rise for some commodities
The Vegetable Oil Price Index averaged 169.1 points in August, up 2.3 points (1.4%) month-on-month, reaching its highest level since July 2022 and the highest level in three years. This increase was driven by higher prices for palm, sunflower, and rapeseed oils, which offset a slight decline in soybean oil prices. Global palm oil prices rose for the third consecutive month, largely supported by strong global import demand and news that Indonesia will increase its commitment to biodiesel blending in 2026.
Global sunflower and rapeseed oil prices increased due to reduced supplies in the Black Sea region and Europe, respectively. By contrast, global soybean oil prices declined slightly, reflecting the prospect of ample global soybean supplies in the 2025/26 season.
Meat prices hit new record high
The in August 2025, averaged 128.0 points in August 2025, up 0.7 points (0.6%) monthly and 5.9 points (4.9%) year-on-year, marking its highest level on record for the second consecutive month, having reached a record high in July 2025.
This increase was driven by continued increases in beef and lamb prices, which largely outweighed stable pork prices and lower poultry prices.
Global beef prices hit a new record high, supported by strong demand from the US, which boosted Australian quotations, and strong import demand from China, which kept Brazilian export prices steady despite lower sales to the US following the imposition of additional tariffs.
Beef prices rose for the fifth consecutive month, reflecting tight export supplies in Australia, with increased volumes destined for more lucrative markets, particularly the UK and Northern Ireland and the US. Global pork prices remained generally stable amid a balanced global supply and demand. In contrast, poultry prices declined, influenced by ample exportable supplies from Brazil.
Although Brazil declared commercial poultry farms free of highly pathogenic avian influenza in mid-June, import restrictions imposed by some of its major trading partners continued to impact demand.
Dairy and Sugar
Dairy prices averaged 152.6 points in August 2025, down 1.3% on a monthly basis, marking the second consecutive monthly decline, but remaining 16.2% higher than their year-earlier level. This decline reflected lower global prices for butter, cheese, and whole milk powder, offsetting higher prices for skimmed milk powder. Butter prices fell 2.5% in August, as strong production in New Zealand—despite the country’s seasonal production slump—and stable supplies from the European Union boosted global availability, while import demand, particularly from Asia, remained weak. Cheese prices fell 1.8%, reversing gains since April, as demand from key Asian markets weakened and seasonal export activity weakened Australian markets.
In the European Union, weak domestic demand during the holidays and increased export competition added to the pressure on cheese prices. Whole milk powder prices fell slightly by 0.3%, reflecting weak demand from key importing countries.
By contrast, cane sugar prices rose 1.8%, driven by limited exportable surpluses in New Zealand and continued demand from Southeast Asia. Sugar prices averaged 103.6 points, up slightly by 0.3 points (0.2%) on a monthly basis after five consecutive months of declines, but still down 10.3 points (9.0%) from their year-earlier level. This rise was mainly due to concerns about the outlook for Brazilian production, with lower sugarcane yields and lower sugar recoveries in key southern growing areas.