News in brief:
– Global food prices fell by 0.8% in May 2025, driven by declines in cereals, vegetable oils, and sugar, despite rising meat and dairy costs.
– The trend reflects improved weather, strong harvests, and increased supply in major producing regions.
Food items are becoming cheaper around the world, according to the Food and Agriculture Organization (FAO). This trend mirrors similar reports in Nigeria, showing the effects of improving weather conditions in food-growing regions and bountiful harvests.
In its latest report, the agency reported that food prices dipped in May 2025 by 0.8% from April. While meat and dairy prices rose, declines in cereals, vegetable oils, and sugar pushed the overall index downward.
Cereal prices saw a notable 1.8% decline, driven by falling maize prices due to strong competition and larger harvests in South America, alongside promising crop conditions in the United States and Europe. Wheat and other coarse grain prices also dropped. However, rice bucked the trend, rising 1.4% on strong demand and currency effects in key exporters.
Vegetable oil prices fell 3.7%, the result of increased palm oil output in Southeast Asia and higher supplies of soy, rapeseed, and sunflower oils.
Sugar prices declined 2.6%, marking the third consecutive monthly fall, amid weak demand and forecasts of stronger global output, particularly in India and Thailand.
Meanwhile, the Meat Price Index rose by 1.3% due to increased international demand for ovine, pig, and bovine meat. Notably, Germany’s return to foot-and-mouth disease-free status helped drive pig meat exports. Poultry prices, however, fell following avian flu-related import bans on Brazilian products.
Dairy prices edged up 0.8%, with strong demand for butter and cheese from Asia and the Middle East outweighing a slight dip in skim milk powder prices. The price of the commodity has continued to rise since at least July 2024.
Despite May’s dip, the FAO Food Price Index (FFPI) remains 6% higher than a year ago, though still 20% below its reference March 2022 peak.
