Global Food Prices Rose in April: FAO

Global food prices increased in April for the second consecutive month, fuelled by rising costs of cereals, meat, and dairy products, the United Nations’ Food and Agriculture Organization (FAO) said in a report released on Friday.

According to the FAO Food Price Index, which monitors monthly changes in a basket of internationally traded food commodities, the average for April stood at 128.3 points—up 1% from March’s revised figure of 127.1. The index was also 7.6% higher than in April 2023 but remained 19.9% below the all-time high recorded in March 2022 after Russia’s invasion of Ukraine disrupted global supply chains.

The FAO’s cereal price index rose by 1.2% in April, driven by firming wheat prices due to reduced export availability from Russia—one of the world’s largest exporters. Meanwhile, international rice prices edged up on the back of strong Asian demand, and US maize (corn) prices rose amid tightening domestic inventories.

“Currency fluctuations played a role in influencing global price movements, while recent changes in tariff policies created further market uncertainty,” the FAO noted in its commentary. Despite the monthly rise, the cereal index was still 0.5% lower than in April 2023.

Meat prices recorded one of the sharpest increases among all categories, rising by 3.2% compared to March. The jump was primarily attributed to higher pig meat prices and strong import demand for bovine meat from key markets in Asia and the Middle East.

Dairy prices also posted significant gains, climbing 2.4% in April and soaring by 22.9% compared to the same period last year. The increase was mainly driven by record-high butter prices due to falling inventories in European markets. The FAO reported that global demand for dairy remains steady, even as supply constraints continue to exert upward pressure on prices.

In contrast to the upward trend in other food groups, vegetable oil and sugar prices saw notable declines. The FAO’s vegetable oil price index dropped 2.3% in April, largely due to a sharp fall in palm oil prices, which more than offset moderate increases in soy, sunflower, and rapeseed oil.

The sugar price index fell by 3.5%—its third consecutive monthly decline. Analysts attributed the drop to concerns over the weakening global economic outlook, which could dampen overall consumption and demand, particularly in emerging markets.

In a separate report on cereals, the FAO maintained its forecast for 2025 global wheat production at 795 million metric tons, roughly in line with 2024 levels. However, the agency slightly trimmed its estimate for total global cereal output in 2024 to 2.848 billion tons, down from its previous projection of 2.849 billion.

The FAO said that while production prospects remain generally favourable in most major producing regions, market volatility, weather-related uncertainties, and trade policy shifts continue to pose risks for the remainder of the year.