The FAO Food Price Index rose for a third consecutive month in April, driven largely by higher vegetable oil prices and increases in cereal and rice costs linked to elevated energy prices and disruptions in the Near East.
The index, which tracks monthly changes in international food commodity prices, averaged 130.7 points in April. That was 1.6% higher than March levels and 2.0% above the same period last year.
According to the Food and Agriculture Organization of the United Nations (FAO), rising energy costs and supply disruptions linked to the effective closure of the Strait of Hormuz continued to place pressure on global agricultural markets.
Vegetable oil prices hit highest level since 2022
The vegetable oil price index rose by 5.9% in April, reaching its highest level since July 2022.
The increase was driven by higher prices for palm, soy, sunflower and rapeseed oils, supported by stronger biofuel demand and rising crude oil prices.
FAO said concerns over lower palm oil production in Southeast Asia also contributed to upward pressure on prices.
“Despite the disruptions linked to the crisis in the Strait of Hormuz, global agrifood systems continue to show resilience. Cereal prices have increased only moderately so far, supported by relatively strong stocks and adequate supplies from previous seasons.
"Vegetable oils, however, are experiencing stronger price increases, driven largely by higher oil prices, which are increasing demand for biofuels and putting additional pressure on vegetable oil markets,” said Máximo Torero, FAO chief economist.
Cereal and rice prices edge higher
The cereal price index increased by 0.8% from March, with wheat prices rising amid drought concerns in parts of the United States and expectations of lower wheat plantings in 2026.
The organisation said higher fertiliser prices and supply disruptions linked to the Strait of Hormuz also contributed to market pressure.
Global maize prices increased by 0.7% due to tighter supplies and weather concerns in Brazil and the United States, while the FAO All Rice Price Index rose by 1.9% as higher crude oil prices pushed up production and transport costs.
Meat prices reach record high
The meat price index rose by 1.2% in April to a new record high, supported by stronger bovine and pig meat prices.
FAO attributed higher beef prices partly to limited cattle supplies in Brazil linked to herd rebuilding, while pig meat prices rose amid stronger seasonal demand in the European Union.
By contrast, dairy and sugar prices declined during the month.
The dairy price index fell by 1.1%, while the sugar price index dropped by 4.7% amid expectations of ample global supplies and improving production prospects in countries including Brazil, China and Thailand.
Cereal production outlook remains positive
FAO also raised its global cereal production forecast for 2025 to 3.04 billion tonnes, representing a 6% increase from the previous year.
However, the organisation warned that uncertainty remains for future wheat production due to elevated energy and fertiliser costs associated with the ongoing Strait of Hormuz disruptions.
The Agricultural Market Information System (AMIS), hosted by FAO, said fertiliser affordability remains under pressure as global urea and phosphate prices continue to rise.
