FAO Food Price Index Increased in 2025: Market Trend Analysis
The past year was marked by an increase in the average FAO Food Price Index, which exceeded the figures of 2024, despite a gradual decline in food prices at the end of the season. In December, the index decreased by 0.6% compared to November, reaching a level of 124.3 points. This figure is 2.3% lower than December 2024 and 22.4% less than the historical peak recorded in March 2022. For the year, the index stood at 127.2 points — an increase of 4.3% compared to the previous year.
This is reported by AgroReview
Price Dynamics of Major Food Commodities
In December, the situation in the grain market was challenging. The grain price index rose by 1.7%, reaching 107.3 points. The increase in wheat prices was driven by supply disruption risks from the Black Sea region, although good harvests in Australia and Argentina positively influenced the overall dynamics. In the corn market, prices rose due to steady export demand and increased ethanol processing in the USA and Brazil. Rice prices also increased by 4.3% due to a decrease in harvest. However, overall for 2025, grain prices reached a six-year low of 107.9 points.
The oilseed segment ended December at its lowest level in the past six months — prices for soybean, canola, and sunflower oils declined due to significant supply and weak import demand. The seasonal increase in palm oil prices did not offset the overall decline. At the same time, the annual price index for oils reached its highest level in the last three years, exceeding 2024 figures by 17.1%.
Meat, Dairy Products, and Sugar: Annual Dynamics Features
In December, meat prices decreased by 1.3% across all categories, driven by an oversupply of products and reduced demand. The dairy market also showed a decline: seasonal production increases led to a price drop of 4.4%. However, for the year, dairy products remained 13.2% more expensive than in 2024.
After a prolonged period of price decreases, sugar began to rise again in December — the increase was 2.4%. The main reason was a reduction in production in Brazil, although forecasts for the harvest in India somewhat stabilized the market. The annual sugar price index became the lowest since 2020.
Experts note that the meat data for recent months are based on a combination of actual and forecast prices, as not all figures were available. This means that the index may be slightly adjusted later.