The global food prices rose for a third consecutive month in April, driven largely by a sharp increase in vegetable oil prices, according to the latest data released by the Food and Agriculture Organization (FAO).
The FAO Food Price Index, which tracks monthly changes in international prices of globally traded food commodities, averaged 130.7 points in April, up 1.6 per cent from March and the highest level recorded since February 2023. The index was also 2 per cent higher than the same period last year.
The increase was mainly fueled by rising vegetable oil prices, which surged 5.9 per cent from March to reach their highest level since July 2022. According to the FAO, the gains were driven by higher prices for palm, soy, sunflower and rapeseed oils amid strong global demand and rising energy costs.
FAO Chief Economist Máximo Torero said elevated crude oil prices and disruptions linked to tensions in the Near East were contributing to stronger demand for biofuels, placing additional pressure on vegetable oil markets.)
International palm oil prices rose for a fifth consecutive month, supported by biofuel policy incentives in producing countries and concerns over lower production in Southeast Asia. Soy and rapeseed oil prices also increased due to robust demand from biofuel industries in the United States and the European Union.
Cereal prices recorded a more moderate rise of 0.8 per cent in April. Wheat and maize prices increased due to drought concerns in parts of the United States, expectations of below-average rainfall in Australia, and rising fertiliser costs linked to higher energy prices.
Rice prices also climbed by 1.9 per cent as higher crude oil prices increased production and transport costs in major exporting countries. However, the FAO noted that strong global cereal supplies and existing stocks helped limit sharper increases in grain prices.
Meanwhile, the FAO Meat Price Index rose 1.2 per cent in April to reach a new record high, supported mainly by stronger bovine meat prices amid limited slaughter-ready cattle supplies in Brazil and sustained import demand, particularly from China.
In contrast, dairy and sugar prices declined during the month. The Dairy Price Index fell 1.1 per cent due to lower butter and cheese quotations, while sugar prices dropped 4.7 per cent on expectations of ample global supplies from major producers including Brazil, China and Thailand.
The FAO also slightly raised its forecast for global cereal production in 2025 to a record 3.04 billion metric tons, reflecting improved crop prospects despite growing geopolitical and climate-related uncertainties affecting food markets worldwide.
