Global food commodity prices declined in September, driven by falling sugar and dairy costs, even as meat prices reached a historic high, according to a United Nations Food and Agriculture Organization (FAO) report released Friday. The FAO Food Price Index, tracking key agricultural commodities, averaged 128.8 points last month—down from August’s revised 129.7 but still 3.4% higher year-on-year.
Sugar and Dairy Lead Decline
FAO’s sugar price index plunged 4.1% to its lowest level since March 2021, reflecting improved supply prospects in Brazil, India, and Thailand. Dairy prices fell 2.6% monthly, with butter leading the drop amid increased production in Oceania. Cereal prices dipped 0.6%, driven by abundant wheat harvests and weaker demand, while maize and rice markets also softened.
U.S. Beef Demand Fuels Meat Price Record
In contrast, FAO’s meat price index rose 0.7% to a new peak, fueled by tight U.S. beef supplies and robust demand. Sheep meat prices also climbed. Meanwhile, vegetable oil prices edged down 0.7%, balancing lower palm and soybean oil costs against rising sunflower and rapeseed oil values.
Cereal Production Outlook Brightens
FAO raised its 2025 global cereal production forecast to 2.971 billion metric tons, up 3.8% from 2024 and the largest annual increase since 2013. Improved wheat, maize, and rice yields drove the revision, signaling potential relief for long-term food security.
