Global Food Prices Decline for Second Month, Reports FAO

World food prices decreased for the second consecutive month in October 2025, driven primarily by robust global supplies, according to the latest report from the Food and Agriculture Organization (FAO) of the United Nations. The FAO Food Price Index (FFPI), which tracks price changes for a range of internationally traded food commodities, averaged 126.4 points in October, reflecting a decline of 2.1 points, or 1.6 percent, from the revised figure of 128.5 points in September.

This downward trend in food prices was influenced by reductions in several key categories, including cereals, dairy products, meat, and sugar, which outweighed a slight increase in the vegetable oil index. Overall, the October FFPI was marginally lower than the figures from October 2024 and remained significantly below its peak of 160.2 points reached in March 2022, standing at 33.8 points or 21.1 percent less.

Key Factors Behind Price Declines

The FAO Sugar Price Index saw a notable decline of 5.3 percent from September, reaching its lowest point since December 2020. This drop is attributed to strong production levels in Brazil and anticipated increases in outputs from Thailand and India. Additionally, reduced crude oil prices have exerted downward pressure on sugar prices due to decreased demand from the biofuel sector.

Similarly, the FAO Dairy Price Index fell by 3.4 percent, largely due to a significant drop in butter prices attributed to ample export supplies from the European Union and New Zealand. The FAO Meat Price Index also decreased by 2.0 percent during the month, driven by sharp declines in pig and poultry prices. However, prices for bovine meat continued to rise, particularly in Australia, supported by strong global demand.

Future Projections for Cereal Production

Alongside the price index, the FAO also released updated forecasts for global cereal markets, indicating a projected increase in world cereal production of 4.4 percent in 2025, which is expected to reach a record level of 2,990 million tonnes. This anticipated growth is expected across all major cereals, suggesting a positive outlook for global food supply in the near future.

The FAO’s findings reflect a complex interplay of supply dynamics and market forces that continue to shape the global food landscape. As prices fluctuate, stakeholders across the agricultural sector will need to navigate these changes to ensure food security worldwide.