Meat and oils push up global food prices

In July, global food prices saw a modest increase. The FAO Food Price Index, a well-known benchmark for international food prices, averaged 130.1 points. This is 1.6 percent higher than in June. Meat and vegetable oils were the main drivers. The index still remains 18.8 percent below the record set in March 2022, yet it is 7.6 percent higher compared to July last year.

Vegetable oils at a three-year high

The FAO Vegetable Oil Price Index reached 166.8 points in July, a rise of 7.1 percent from June and the highest level in three years. Palm oil prices increased due to strong global demand and improved competitiveness. Soybean oil was supported by expectations that the biofuel sector in America will continue buying. Sunflower oil rose as a result of reduced exports from the Black Sea region. Only rapeseed oil became cheaper, driven by the arrival of new crop supplies in Europe.

Meat at record level

At 127.3 points, the FAO Meat Price Index reached a new peak, up 1.2 percent. Beef and lamb prices increased on the back of strong demand, especially from China and the United States. Poultry prices edged up slightly as imports resumed after Brazil regained its avian influenza-free status. Pork prices, on the other hand, declined due to ample supplies and weaker demand, particularly in the European Union.

Not all prices rose. Cereals, dairy and sugar showed declines. The cereal index dropped to 106.5 points, down 0.8 percent. Lower wheat and sorghum prices weighed on the index, despite higher prices for maize and barley. The dairy index fell by 0.1 percent due to lower butter and milk powder prices and abundant export supplies. Cheese, however, became more expensive, supported by strong demand in Asia and the Near East and reduced export availability from the European Union. Sugar fell for the fifth consecutive month, down 0.2 percent, reflecting expectations of higher production in 2025/26 in Brazil, India and Thailand.

Fao.org