World food prices dip in December but rise overall in 2025: FAO
The FAO Dairy Price Index fell 4.4% in December, driven by a sharp drop in butter prices following increased cream availability in Europe.
World food prices declined for a fourth consecutive month in December, mainly pressured by lower dairy, meat and vegetable oil prices, marking the lowest monthly average since January 2025, the United Nations' Food and Agriculture Organization (FAO) said today (9 January).
The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 124.3 points in December, down from 125.1 in November and 2.3% lower than a year earlier.
However, for the full year of 2025, the index averaged 127.2 points, up 4.3% from 2024, as higher global prices for vegetable oils and dairy products outweighed declines in cereal and sugar prices.
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The FAO Dairy Price Index fell 4.4% in December, driven by a sharp drop in butter prices following increased cream availability in Europe. Despite the monthly decline, dairy prices averaged 13.2% higher in 2025 compared to 2024, reflecting strong import demand and limited exportable supplies earlier in the year.
Meat prices declined by 1.3% in December, led by lower prices for bovine and poultry meat. On an annual basis, however, the meat price index averaged 5.1% above 2024 levels, supported by strong global demand and uncertainty linked to animal diseases and geopolitical tensions, the FAO said.
Vegetable oil prices edged down 0.2% in December to a six-month low, as weaker quotations for soy, rapeseed and sunflower oils offset gains in palm oil prices. For the full year, the vegetable oil index averaged 17.1% higher than in 2024, reaching a three-year high amid tight global supplies.
The FAO Cereal Price Index rose 1.7% in December, with wheat prices supported by renewed concerns over export flows from the Black Sea region, while maize prices were buoyed by strong ethanol production in both Brazil and the United States.
For the full year of 2025, the cereal price index averaged 4.9% lower than in 2024, marking its third consecutive annual decline and the lowest annual average since 2020.
Sugar prices increased by 2.4% in December after three consecutive monthly declines, mainly due to lower production in southern regions of Brazil.
Despite the December rise, the FAO Sugar Price Index averaged 17% lower in 2025 compared to 2024, reaching a five-year low as global sugar supplies remained ample.
