Food & Climate
The global food price index, issued by the Food and Agriculture Organization of the United Nations (FAO), fell in September, driven by a decline in sugar and dairy products. Butter, in particular, saw a sharp decline, driven by weaker demand for ice cream, and vegetable oils decrease, offsetting the impact of a record-high meat price.
According to the report, received by “Food & Climate” Platform, the Food Price Index averaged 128.8 points in September 2025, slightly down from its revised level of 129.7 points in August, but up by 4.2 points (3.4%) compared to the same month last year.
It remained 31.4 points (19.6%) below its peak in March 2022. According to the report, received by “Food & Climate” Platform, the Food Price Index averaged 128.8 points in September 2025, slightly down from its revised level of 129.7 points in August, but up by 4.2 points (3.4%) compared to the same month last year. It remained 31.4 points (19.6%) below its peak in March 2022.
Meat pushes the Food Price Index higher
Meat pushed the global food price index higher, but it was pulled down by lower butter and other commodities, ending up with a slight decline last month.
The Meat Price Index averaged 127.8 points in September, up 0.9 points (0.7%) monthly and 7.9 points (6.6%) year-on-year, hitting a new record high.
This increase reflected higher beef and lamb prices, while pork and poultry prices stabilized.
Beef prices rose to an all-time high, supported by strong demand in the United States, where limited domestic supplies and favorable price differentials continued to encourage imports, particularly from Australia.
Brazilian cattle prices also rose, supported by strong global demand, offsetting reduced access to the United States following the imposition of higher tariffs.
In the first week of August, the United States raised tariffs on a wide range of Brazilian imports. From 10% to 50%, due to President Donald Trump’s refusal to prosecute his right-wing ally and former president, Jair Bolsonaro.
Global sheep meat prices have risen on the back of strong global demand for imports amid limited export availability from Oceania (the world’s smallest continent by land area, comprising Australia, Melanesia, Micronesia, and Polynesia).
Pork prices stabilized, as strong demand for Brazilian pork from alternative markets offset lower purchases from China. In the European Union, the impact of new tariffs imposed by China on pork export prices remained limited.
Poultry meat prices stabilized, reflecting relatively balanced global markets, despite import restrictions related to a local outbreak of Highly Pathogenic Avian Influenza.
The FAO Dairy Price Index registered 148.3 points in September 2025, its third consecutive decline, down 2.6% on a monthly basis, but remaining some 9% above its level a year earlier.
All dairy sub-indices declined, with butter prices falling by 7%, skim milk powder by 4.3%, and whole milk powder by 3.1%, while cheese prices declined slightly. The relatively sharp decline in butter prices reflects a seasonal increase in cream availability due to reduced demand for ice cream in the Northern Hemisphere, coupled with expectations of higher production in New Zealand as the spring season approaches. However, despite this decline, butter prices remained 6.3% above the 2024 average. Milk powder prices declined mainly due to weak demand from major importers and intensified competition in export markets.
Cereal, Oils, and Sugar Price Indexes Decline
The Cereal Price Index averaged 105.0 points, down 0.6 points (0.6%) monthly and 8.5 points (7.5%) year-on-year.
This was driven by a third consecutive monthly decline in wheat prices due to weak international demand and confirmed abundant crops in the Russian Federation and other major producing countries in Europe and the Americas.
Maize prices also declined, amid expectations of ample supplies in Brazil and the Americas (exporting countries) and the temporary suspension of grain export taxes in Argentina.
Among other coarse grains, international prices for both barley and sorghum rose, with barley prices registering their third consecutive monthly increase.
Meanwhile, the FAO Rice Price Index declined by 0.5%, driven by a decline in Indica prices, as ample exportable supplies and reduced demand from buyers in the Philippines and Africa weighed on the market.
The Vegetable Oil Price Index averaged 167.9 points, down 1.2 points (0.7%) on the month, but still 25.0 points (18.0%) above its level a year earlier.
This was driven by falling palm and soybean oil prices, which largely offset increases in sunflower and rapeseed oil prices.
International palm oil prices declined slightly, largely due to a larger-than-expected August inventory build in Malaysia, which reached a 20-month high, offsetting the impact of strong global import demand. International soybean oil prices declined for the second consecutive month.
By contrast, sunflower and rapeseed oil prices continued to rise, reflecting, respectively, continued tight supplies in the Black Sea region and Europe.
The Sugar Price Index averaged 99.4 points, down 4.2 points (4.1%) on a monthly basis and 26.9 points (21.3%) from a year earlier, reaching its lowest level since March 2021 (96.2 points).