FAO Food Price Index in September: Decline in Sugar and Dairy Prices
In September 2025, global food prices continued to decrease, driven by lower sugar and dairy prices, which offset new price highs for meat.
This is reported by AgroReview
Main Changes in the FAO Index in September
The food price index calculated by the Food and Agriculture Organization of the United Nations (FAO), which tracks changes in the value of a basket of staple foods on the international market, averaged 128.8 points in September. This is down from August, when the figure was revised to 129.7 points.
Compared to September of last year, the index increased by 3.4%. However, from the peak recorded in March 2022 following the onset of the full-scale aggression by the Russian Federation against Ukraine, it has decreased by nearly 20%.
Category Details: Sugar, Dairy Products, Grains, and Vegetable Oils
The sugar price index fell to its lowest level since 2021. As explained by the FAO, this was due to improved forecasts for global supplies: sugar production in Brazil exceeded expectations, and harvest forecasts in India and Thailand remain positive.
The dairy price index dropped by 2.6% compared to the previous month, which was driven by a sharp decline in butter prices amid increased production forecasts in Oceania.
The FAO grain price index decreased by 0.6% in September compared to August. Specifically, wheat prices fell for the third consecutive month due to record harvests and low demand in the international market. Corn prices also decreased, partly due to the temporary suspension of export taxes in Argentina. At the same time, rice prices showed a monthly decline due to reduced orders from buyers in the Philippines and African countries.
Global prices for vegetable oils fell by 0.7%. The decline in palm and soybean oil prices offset the increase in sunflower and rapeseed oil prices.
The only segment that recorded an increase was the meat market: the FAO meat price index rose by 0.7%, setting a new record due to rising prices for beef and lamb.