FAO index records an increase in 4 of the 5 monitored categories, with emphasis on dairy and vegetable oils
Global food prices recorded an increase in February 2025. The United Nations Food and Food Organization (FAO) reported on Friday (7.mar.2025) that the price index of a basic food basket reached 127.1 points. The value represents a 1.6% increase compared to January and an increase of 8.2% compared to February 2024.
Despite the discharge, the index remains 20.7% below the historical peak of March 2022, recorded after the start of the conflict between Russia and Ukraine.
Sugar led the increases with a 6.6%increase, interrupting 3 consecutive months of decline. FAO attributes this increase to concerns with more restricted global supply due to decline production prospects in India and dry climate in Brazil. The strengthening of the real in the dollar also contributed to the elevation.
In the dairy sector, prices rose 4% compared to January. The increase was driven by the strong international demand for cheese and the recovery in butter prices. Skimated milk powder registered a moderate increase of 1.8%.
Vegetable oils were up 2%. Growth reflects higher prices of palm, colza, soy and sunflower oils. The lower production in Southeast Asia and the expectation of increased demand for biodiesel in Indonesia supported the recovery of palm oil.
Cereals showed a modest increase of 0.7% in February. Wheat was the main responsible due to restricted Russian offer and worries about unfavorable crop conditions in Russia, Europe and the United States. Corn prices also rose, reflecting the most restricted Brazilian seasonal offer and worsening of crop conditions in Argentina.
Meat prices recorded a marginal drop of 0.1% in the month, indicating relative stability in this segment. Beef was higher prices in Australia due to strong global demand, especially from the US. Already the poultry and pork meats showed a drop in prices, with abundant offer, mainly from Brazil.
