World food prices continue to rise, and February 2025 became the third month in a row, when the FAO food price index shows an increase. Sugar, dairy products and vegetable oils have risen the most. At the same time, the prices for meat remain stable, and the rice even recorded a decrease.
According to the UN Food and Agricultural Organization (FAO), in February 2025 the food index amounted to 127.1 points, which is 1.6% more than in January. Compared to February 2024, growth was 8.2%. The highest level of the index was recorded in March 2022 - 160.2 points.
The grain price index in February was 112.6 points, which is 0.7% higher than in January, but 1.1% lower than a year ago. The growth is caused by the reduction of export reserves in Russia, which has led to a shift in demand for alternative suppliers. The weather risks in the US, Europe and Russia had an additional impact.
Corn prices have also increased due to a decrease in Brazil's reserves and adverse weather conditions in Argentina. At the same time, the prices of rice on the contrary decreased by 6.8% due to excess reserves and low import demand.
The price index for vegetable oils reached 156.0 points, which is 2% more than in January. The rise in palm oil prices is explained by the seasonal reduction in production in Southeast Asia. Prices for soybean, sunflower and rapeseed oil have also increased due to fears of possible reduction of world reserves.
The price index for dairy products increased by 4%, reaching 148.7 points. The increase in cheese prices, dry whole milk and butter is explained by high demand and decreased milk yield in Oceania.
Sugar prices jumped by 6.6%, reaching 118.5 points. The main factors are concern for reducing world reserves, reducing the crop in India and adverse weather conditions in Brazil. Additional influence was caused by the strengthening of Brazilian Real, which reduced the attractiveness of exports.
Meat prices in February remained almost unchanged. The cost of beef has increased due to increased demand, especially in the United States, as well as because of the rise in cattle in Australia. At the same time, pork and poultry prices have decreased due to excessive supply.
The world trends indicate a further increase in food prices, especially in dairy, oils and sugar segments. The main reasons are the increase in demand, the reduction of production and export inventories, as well as the influence of weather factors. If these trends persist, foodstuffs for end consumers around the world are possible.
