Global Food Commodity Prices Rose in February, Driven by Sugar, Dairy, and Vegetable Oil Increases

Global food commodity prices increased in February, fueled by higher prices for sugar, dairy products, and vegetable oils, according to the latest report from the Food and Agriculture Organization of the United Nations (FAO).

The FAO Food Price Index, which tracks monthly changes in international prices of a basket of globally traded food commodities, averaged 127.1 points in February, up 1.6% from the previous month and 8.2% higher than in February 2024.

The rise was largely driven by the FAO Sugar Price Index, which jumped 6.6% from January to reach 118.5 points in February, reversing a three-month downward trend.

The increase was fueled by concerns over a possible tightening of global supplies for the 2024/25 season, particularly due to declining production prospects in India and unfavorable weather conditions affecting harvests in Brazil.

The FAO Dairy Price Index also rose, increasing by 4.0% from January to an average of 148.7 points. The increase reflected higher prices for all major dairy products, including cheese and whole milk powder, as strong import demand outpaced output in key exporting regions.

The FAO Meat Price Index remained stable in February, averaging 118.0 points, a marginal decrease of 0.1% compared to January.

While international prices for poultry and pig meat declined due to ample global supplies, prices for ovine and bovine meat held firm, supported by solid import demand worldwide. (Photo: Freepik)