Global food commodity prices reached a two-year high in July, primarily due to increased international prices for meat and vegetable oils, as reported by the United Nations’ Food and Agriculture Organization on Friday.
In July 2025, the FAO Food Price Index, a key global indicator for food commodity prices, rose to an average of 130.1 points.
This represents a 1.6% increase from the previous month, June, according to the FAO.
This figure represents the highest reading since February 2023.
However, it remains 18.8% lower than the peak recorded in March 2022, which occurred in the aftermath of Russia’s full-scale invasion of Ukraine.
FAO reported that in July, increased prices for meat and vegetable oil offset decreases in the prices of cereal, dairy, and sugar.
Vegetable oil index
In July, the FAO vegetable oil price index hit a three-year high, averaging 166.8 points.
This represents an increase of 11.1 points or 7.1% from the previous month.
Higher prices for palm, soy, and sunflower oils drove the increase, counteracting a drop in rapeseed oil prices.
International palm oil prices climbed for the second consecutive month in July, mainly due to strong global import demand spurred by its enhanced price competitiveness against other vegetable oils.
Soy oil quotations increased due to anticipated strong feedstock demand from the biofuel industry in the Americas.
Concurrently, sunflower oil prices also rose, attributed to tightening seasonal supplies in the Black Sea region.
FAO said:
By contrast, global rapeseed oil prices declined in July, mainly pressured by the arrival of new crop supplies in Europe.
Meat prices
In July, the FAO meat price index reached an unprecedented high of 127.3 points, 1.2% or 1.5 points higher than in June.
The index was also 6.0% or 7.3 points higher compared to July 2024.
Higher prices for bovine and ovine meats were the primary drivers of the increase, with a slight rise in poultry meat quotations also contributing, the agency said.
Conversely, pig meat prices saw a decline.
Bovine meat prices globally have hit a new record high, primarily due to increased demand, especially from China and the US, outpacing the available export supplies.
This strong import demand has particularly driven up quotations in Australia.
Firm ovine meat prices in Brazil were supported by robust global demand, increasing significantly for the fourth month in a row.
This rise was due to sustained global demand coinciding with limited export supplies from Oceania.
Meanwhile, poultry meat prices rose due to increased Brazilian export prices, according to FAO.
This followed the lifting of restrictions and resumed imports by trading partners after Brazil regained its HPAI-free status in mid-June.
Dairy prices
The FAO dairy price index saw a marginal dip in July 2025, falling 0.1% from June to average 155.3 points, yet it remains significantly higher than its value a year ago, up 21.5% from July 2024.
FAO said:
The marginal decline – the first since April 2024 – was driven by lower international prices for butter and milk powders, which were largely offset by continued increases in cheese quotations.
For the first time in six months, the butter price index has declined, falling by 1.1%.
This drop is mainly due to lower prices from Oceania, where higher production and growing stockpiles have put pressure on prices.
Nonetheless, robust butter prices in the European Union, supported by strong demand and limited cream availability, mitigated the overall decline, FAO said.
Ample export supplies from Oceania and subdued import demand, particularly from China and other key Asian markets, continued to drive down the indices for both whole and skim milk powders.
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