FAO Food Price Index slips in December, but 2025 average remains above 2024

Despite consistent month-on-month declines toward the end of 2025, the FAO Food Price Index (FFPI) recorded a higher annual average compared to 2024, reflecting persistent volatility across global agricultural commodity markets.

The FFPI averaged 124.3 points in December 2025, down 0.6 percent from November, as lower prices for dairy products, meat and vegetable oils outweighed gains in cereals and sugar. The index stood 2.3 percent below its level in December 2024 and remained 22.4 percent lower than the historic peak recorded in March 2022. However, for the full year 2025, the index averaged 127.2 points, marking a 4.3 percent increase over the 2024 annual average.

Cereal prices rose modestly in December, with the FAO Cereal Price Index climbing to 107.3 points. International wheat prices were supported by renewed concerns over Black Sea export flows, although ample global supplies and strong harvests in Argentina and Australia capped gains. Maize prices strengthened on robust export demand and higher ethanol production in Brazil and the United States. Rice prices increased sharply across all market segments due to improved demand, easing harvest pressure and supportive government policies. On an annual basis, cereal prices averaged 4.9 percent lower than in 2024, marking the lowest level since 2020.

Vegetable oil prices fell to a six-month low in December, driven by declines in soy, rapeseed and sunflower oil prices. Abundant export supplies from the Americas and higher rapeseed output in Australia and Canada weighed on markets. Palm oil prices, however, edged higher amid expectations of seasonal production slowdowns in Southeast Asia. Despite the December decline, vegetable oil prices averaged 17.1 percent higher in 2025, reaching a three-year high due to tight global supplies.

Meat prices declined across all categories in December, led by bovine and poultry meat. Increased cattle slaughter in Australia and ample poultry export supplies contributed to the downturn. Still, the annual meat price index rose 5.1 percent in 2025, supported by firm import demand and market uncertainty linked to animal diseases and geopolitical tensions.

Dairy prices fell sharply in December, particularly butter and whole milk powder, due to seasonal supply increases in Europe and Oceania. Nevertheless, dairy prices averaged 13.2 percent higher in 2025, driven by strong demand earlier in the year.

Sugar prices rebounded in December following production declines in Brazil but ended 2025 at their lowest annual level since 2020, reflecting ample global supplies and strong output prospects in India.