As of July 2025, the price remained “practically unchanged” as decreases in cereals and dairy products offset a rise in meat prices, which reached “a historical high,” according to the FAO.
“The decline in cereal and dairy product prices offset the increase in prices for meat, sugar, and vegetable oils,” the organization explained, adding that the indicator remained “practically unchanged” compared to July.
However, vegetable oil prices increased by 1.4%, reaching their highest level in three years.
The meat price index also rose 0.6% in August, “reaching a new historical high due to the increase in international beef prices, following strong demand in the United States and firm import demand from China, which boosted export quotations in Australia and Brazil, respectively.”
Similarly, sugar prices rose slightly by 0.2% compared to July, after five consecutive months of declines, mainly due to concerns over cane production and yield in Brazil and increased global import demand.
In contrast, cereal prices decreased by 0.8% this month, due to more abundant wheat harvests in Russia and the European Union (EU), along with rising maize prices and falling prices for all types of rice.
Additionally, the FAO revised upwards its forecast for global cereal production in 2025, which would reach a historic record of 2.961 million tonnes, up 3.5% from last year’s level.
Conversely, the forecast for global cereal trade for 2025/26 was adjusted upwards to 493.4 million tonnes, an increase of 1.4% compared to the previous year due to strong demand for wheat.
