FAO Global Food Price Index
Grains +0.3%, Dairy Products +2.4%
Oils -5.6%, Meat -1.4%, Sugar -6.8%
Global food prices started the year on a downward trend. While prices for grains and dairy products rose, prices for oils, meat, and sugar fell, leading to an overall decline in prices.
According to the United Nations Food and Agriculture Organization (FAO) on the 8th, the global food price index for January 2025 recorded 124.9 points, down 1.6% from the previous month (127.0 points). This marked the second consecutive month of decline following December of last year.
The FAO surveys international price trends for 95 items across 24 categories and publishes monthly food price indices for five major groups: grains, oils, meat, dairy products, and sugar.
By category, prices for grains and dairy products saw slight increases, while prices for oils, meat, and sugar declined.
The grain price index for January was 111.7 points, up 0.3% from 111.4 points in the previous month. International wheat prices experienced upward pressure due to winter crop conditions and supply restrictions in Russia, parts of the European Union (EU), and the United States, but prices slightly fell due to weak export performance. International corn prices rose due to supply shortages, weather changes in Argentina, and downward revisions of U.S. corn production and stock forecasts. The FAO rice price index declined amid abundant export supplies and intensified competition among exporting countries.
The oils price index was 153.0 points, down 5.6% from 162.1 points the previous month. Prices for palm oil and rapeseed oil fell, while soybean oil and sunflower oil prices remained relatively stable. International palm oil prices decreased somewhat due to demand adjustments, and soybean oil and sunflower oil prices were relatively stable due to unfavorable weather for soybean production in South American countries and strong global import demand.
The meat price index was 117.7 points, down 1.4% from 119.4 points the previous month. Prices for lamb, pork, and poultry declined, while beef prices rose. Lamb prices fell due to decreased demand following the year-end holidays. Pork prices dropped due to import bans caused by foot-and-mouth disease outbreaks in Germany and slaughterhouse closures during the holiday period, leading to oversupply. Poultry prices fell as supply increased due to lower feed prices in Brazil, while beef prices rose due to sustained import demand.
The dairy price index was 142.9 points, up 2.4% from 139.6 points the previous month. Cheese prices increased as production recovered in major producing countries and global import demand rose with expanded domestic retail sales. Butter prices fell despite increased demand from food processors in Europe and Oceania. The international price of whole milk powder declined due to production recovery in Europe and weak domestic and import demand.
The sugar price index was 111.2 points, down 6.8% from 119.3 points the previous month. Favorable weather in recent months improved Brazil’s sugar production outlook for 2024/25, and the Indian government decided to resume sugar exports that had been restricted since October 2023, leading to a decline in sugar prices.
An official from the Ministry of Agriculture, Food and Rural Affairs stated, "The government is supporting the food industry by applying tariff quotas and providing funds for raw material purchases to ease cost burdens," adding, "We are closely communicating with related industries to minimize the impact of rising international food prices on domestic inflation."
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