World food prices dip in December but still up in 2025, says UN
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Vegetable oil prices eased 0.2 per cent in December to a six-month low, as weaker soy, rapeseed and sunflower oil quotations offset gains in palm oil.
PHOTO: AFP
PARIS – World food prices declined for a fourth consecutive month in December, mostly pressured by dairy, meat and vegetable oil prices, marking the lowest average since January 2025, the UN’s Food and Agriculture Organisation (FAO) said on Jan 9.
The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 124.3 points in December, down from 125.1 in November and 2.3 per cent lower than a year earlier.
For the full year, the index averaged 127.2 points, up 4.3 per cent from 2024, as higher world prices for vegetable oils and dairy products outweighed declines in cereal and sugar quotations.
The dairy index declined by 4.4 per cent in December, driven by a steep drop in butter prices following increased cream availability in Europe.
But for the year as a whole, dairy prices averaged 13.2 per cent above 2024, reflecting strong import demand and limited exportable supplies earlier in 2025.
Meat prices dipped 1.3 per cent in December, led by falls in bovine and poultry categories, but the full-year index remained 5.1 per cent above the previous year’s value, supported by strong global demand and uncertainty linked to animal diseases and geopolitical tensions, the FAO said.
Vegetable oil prices eased 0.2 per cent in December to a six-month low, as weaker soy, rapeseed and sunflower oil quotations offset gains in palm oil.
For the whole year, the vegetable oil index averaged 17.1 per cent higher than in 2024, reaching a three-year high amid tight global supplies.
The FAO Cereal Price Index rose 1.7 per cent in December, with wheat supported by renewed concerns over Black Sea export flows and maize buoyed by strong ethanol production in both Brazil and the US.
For the whole year, the cereal index averaged 4.9 per cent below its 2024 level, its third consecutive annual decline and the lowest annual average since 2020.
Sugar prices rose 2.4 per cent in December after three consecutive monthly declines, mainly due to lower production in Brazil’s southern regions.
The sugar index reached a five-year low for 2025, down 17 per cent from 2024, as global supplies remained plentiful. REUTERS
