Global Food Price Index Continues to Fall in October... Dairy Down 3.4%, Sugar Down 5.3%

Sugar Falls to Lowest Level Since December 2020

Global food prices continued to decline in October, with all major categories except for vegetable oils recording a downward trend.

According to the United Nations Food and Agriculture Organization (FAO), the global Food Price Index stood at 126.4 points in October 2025, down 1.6% from the previous month's 128.5 points, marking a second consecutive month of decline. By category, prices for cereals, meat, dairy products, and sugar all fell, while vegetable oil prices rose.

The Cereal Price Index dropped by 1.3% to 103.6 points from 104.9 points in the previous month. Prices for all major grains-including wheat, barley, corn, and sorghum-declined. This was influenced by stable production in the Southern Hemisphere and progress in winter wheat sowing in the Northern Hemisphere. However, concerns over reduced corn harvests in the European Union and the United States, as well as the trade agreement between the United States and China, partially offset the decline. Rice prices also fell by 2.5% due to intensified competition and the onset of the harvest season in major exporting countries.

The Meat Price Index recorded 125.0 points, a 2.0% decrease from 127.5 points in the previous month. Although the Meat Price Index dropped by 2% from the prior month, it was still 4.8% higher than the same period last year. Sharp declines in pork and poultry prices led the overall decrease. Factors included oversupply in the European Union, new tariffs imposed by China, and export restrictions from Brazil due to highly pathogenic avian influenza (HPAI). In contrast, beef prices rose, driven by higher distribution prices for Australian beef.

The Dairy Price Index fell by 3.4% to 142.2 points from 147.2 points in the previous month, marking the fourth consecutive month of decline. All dairy categories saw decreases: butter (-6.5%), whole milk powder (-6.0%), skim milk powder (-4.0%), and cheese (-1.5%). The main reasons cited were increased supply from the European Union and New Zealand, as well as weakened demand in Asia and the Middle East.

The Sugar Price Index dropped by 5.3% to 94.1 points from 99.4 points in the previous month, hitting its lowest level since December 2020. Strong production in southern Brazil and expectations of increased output in Thailand and India led to expanded supply, while a decline in international crude oil prices reduced demand for biofuels, contributing further to the decrease.

In contrast, the Vegetable Oil Price Index rose by 0.9% to 169.4 points from 167.9 points in the previous month. Palm oil prices rebounded slightly due to biodiesel policies in major producing countries in Southeast Asia, while sunflower oil prices continued to climb for the fourth consecutive month amid supply delays in the Black Sea region. Rapeseed oil and soybean oil also remained strong, supported by supply shortages in Europe and increased domestic demand in Brazil and the United States, respectively.

This content was produced with the assistance of AI translation services.