Global food prices eased slightly in September 2025, primarily due to declines in sugar and dairy prices, according to the Food and Agriculture Organization of the United Nations (FAO). The FAO Food Price Index averaged 128.8 points last month, down from 129.7 points in August. Despite this decrease, the index was still 3.4 percent higher than the same period last year, reflecting ongoing market volatility.
The FAO Cereal Price Index fell by 0.6 percent, with wheat prices dropping for the third consecutive month amid weak demand and larger harvests in key producing countries such as Russia, Europe, and North America. Maize prices also declined, supported by abundant global supplies and export tax suspensions in Argentina. Rice prices saw a slight drop due to reduced orders from the Philippines and several African nations.
Sugar prices hit their lowest levels since March 2021, falling 4.1 percent, as production forecasts in Brazil, India, and Thailand improved. Dairy prices decreased 2.6 percent, led by a 7 percent drop in butter prices due to lesser demand for ice cream in the Northern Hemisphere and better production prospects in Oceania.
In contrast, the FAO Meat Price Index rose 0.7 percent to record highs, driven by strong demand for beef and lamb, especially in the United States where limited domestic supply has encouraged imports. Poultry and pork prices stabilized.
For 2025, FAO forecasts global cereal production to reach 2,971 million tonnes, a 3.8 percent increase—the highest growth since 2013. Significant production increases are expected in wheat, maize, and rice, notably in Australia, the U.S., and India. Global cereal stocks are projected to rise, with international trade increasing by 2.5 percent, reflecting higher wheat exports while rice trade may decline as some countries rely more on local harvests.
Overall, while some commodity prices eased, a balance of strong production and demand across sectors is anticipated to keep global food markets stable through 2025.
