Global food benchmark eased month-on-month as dairy, meat and vegetable oils declined, but the index averaged 4.3% higher in 2025 than in 2024.
Global food commodity prices weakened slightly in December, as softer quotations for dairy products, meat and vegetable oils outweighed firmer cereal and sugar markets, according to the UN Food and Agriculture Organization (FAO).
The FAO Food Price Index averaged 124.3 points in December, down 0.6% from November and 2.3% below December 2024. Despite the year-end easing, the index averaged 127.2 points in 2025, up 4.3% from 2024, driven primarily by higher vegetable oil and dairy prices over the year.
2025 MARKS LOWEST ANNUAL CEREAL AVERAGE SINCE 2020
FAO’s Cereal Price Index averaged 107.3 points in December, up 1.7% from November. International wheat prices found support from renewed market attention on Black Sea export flow risks, although ample global availability continued to cap gains, reinforced by confirmation of large crops in Argentina and Australia.
In maize, quotations strengthened on robust export demand and strong domestic ethanol production in both Brazil and the United States. Sorghum prices moved higher alongside maize, even as sales to China remained slow.
FAO also reported a firm rice market: the All Rice Price Index rose 4.3% in December, with gains across segments linked to reduced harvest pressure, improving demand and supportive policy measures.
On a full-year basis, the FAO Cereal Price Index averaged 107.9 points in 2025, down 4.9% from 2024 and the lowest annual average since 2020. The FAO All Rice Price Index averaged 103.5 points in 2025, down 35.2% year on year, reflecting ample exportable supplies, intense competition among exporters and reduced purchasing by some Asian importing countries.
VEGETABLE OILS DIP TO A SIX-MONTH LOW IN DECEMBER
The FAO Vegetable Oil Price Index slipped 0.2% in December to a six-month low, as declines in soybean, rapeseed and sunflower oil prices outweighed firmer palm oil quotations. For 2025 as a whole, the vegetable oil index averaged 17.1% higher than 2024, marking a three-year high, which FAO linked to tighter global supply conditions.
MEAT AND DAIRY WEAKEN IN DECEMBER; BOTH FINISH 2025 ABOVE 2024
FAO’s Meat Price Index fell 1.3% from November, with lower prices recorded across all categories, led by bovine and poultry. Compared with a year earlier, the index remained higher, and FAO said the 2025 average was 5.1% above 2024, supported by strong import demand and heightened uncertainty tied to animal disease outbreaks and geopolitical tensions.
The Dairy Price Index declined 4.4% in December, driven mainly by a sharp drop in butter prices amid seasonally stronger cream availability in Europe. For 2025, dairy prices averaged 13.2% higher than in 2024, reflecting strong import demand and more limited exportable supplies earlier in the year.
The FAO Sugar Price Index rose 2.4% month on month, largely reflecting a sharp decline in sugar output in Brazil’s key southern growing regions. Even with the December increase, sugar remained well below its year-ago level. Across 2025, the sugar index averaged 17.0% below 2024, the lowest annual value since 2020, amid ample export availability.