Global food prices experienced a marginal decrease in September compared to the previous month, primarily due to lower sugar and dairy product prices. However, meat prices hit record highs, according to the UN Food and Agriculture Organization (FAO).
The comprehensive food price index, which monitors international market prices for cereals, vegetable oils, dairy products, meat, and sugar, fell by 0.9 points to 128.8 in September. Despite this monthly dip, prices remain 3.4 percent higher than they were a year ago.
In the breakdown of specific categories, cereal prices decreased by 0.6 percent month-on-month, while vegetable oil prices dropped by 0.7 percent. The dairy products index saw a more significant decline of 2.6 percent, with global butter prices falling by a substantial seven percent. Sugar prices experienced the most dramatic reduction, falling 4.1 percent compared to August, reaching their lowest level since March 2021.
Bucking the downward trend, meat prices continued their upward trajectory, rising by 0.7 percent to reach an all-time high. Year-on-year, meat prices have surged by 6.6 percent, reflecting ongoing supply challenges in global protein markets.
Looking ahead, the FAO has revised its forecast for global cereal production upward to 2.971 billion tons from the previous estimate of 2.961 billion tons. This represents a substantial 3.8 percent increase compared to last year’s output. If realized, this would mark the highest growth rate since 2013, bolstered by improved harvest outlooks for wheat, corn, and rice.