The FAO Food Price Index fell by 0.8% in May 2025, led by declines in global prices of cereals, vegetable oils, and sugar. Maize and wheat prices dropped due to strong harvests and weak demand, while rice prices rose slightly. Vegetable oil prices fell amid abundant supply and low biofuel demand, especially for palm and soy oil. Sugar prices continued to decline for a third consecutive month.
The FAO Food Price Index (FFPI) recorded a modest decline in May 2025, averaging 127.7 points, down 0.8% from April. The fall in global prices of cereals, vegetable oils, and sugar outweighed gains in meat and dairy prices, according to the latest update from the UN Food and Agriculture Organization (FAO). Despite the monthly dip, the index remained 6.0% higher than its level a year ago, although still over 20% below its peak in March 2022.
Cereals: Global Maize Prices See Sharp Decline
The FAO Cereal Price Index dropped by 1.8% in May, driven largely by falling maize prices amid robust competition and strong harvest prospects in Argentina, Brazil, and the United States. Wheat prices also slipped due to low global demand and improved crop conditions in key regions. However, the All Rice Price Index bucked the trend, rising 1.4% on strong demand and currency fluctuations favoring exporters.
Vegetable Oils: Prices Continue to Soften
The FAO Vegetable Oil Price Index declined by 3.7%, reflecting lower prices for palm, soy, rapeseed, and sunflower oils. Palm oil prices fell sharply for the second straight month amid increased seasonal production in Southeast Asia. Soy oil also faced pressure from rising South American supply and weak U.S. biofuel demand.
Meat: Price Gains Driven by Bovine, Ovine and Pig Meat
The FAO Meat Price Index rose by 1.3%, led by increased prices of bovine, ovine, and pig meat. High demand and constrained supplies supported bovine meat prices, which reached a record high. Ovine meat prices climbed due to strong import demand, while pig meat saw a rebound, particularly in Germany after regaining foot-and-mouth disease-free status. Poultry prices, however, declined following an avian flu outbreak in Brazil that disrupted exports.
Dairy: Strong Asian Demand Supports Price Rise
Dairy prices increased 0.8% in May, with butter and whole milk powder seeing strong gains driven by tight supply and firm demand in Asia and the Middle East. Cheese prices also rose, supported by demand in East and Southeast Asia, while skim milk powder prices edged down slightly.
Sugar: Third Consecutive Monthly Drop
Sugar prices fell 2.6% in May, continuing a three-month decline. Weak global demand and improved production forecasts for India and Thailand contributed to the downward trend, along with concerns over global economic uncertainties impacting food and beverage industries.
The overall decline in the index reflects a stabilizing global food market but highlights ongoing volatility due to weather events, disease outbreaks, and shifting demand trends.
