Global Food Prices Hit Four-Month Decline, Dairy and Meat Lead the Fall

World food prices fell for a fourth month in December, driven by declines in dairy, meat, and vegetable oils, reaching the lowest levels since January 2025. Despite a yearly rise in vegetable oil and dairy prices, other commodities such as cereals and sugar saw notable declines.

In December, world food prices marked their fourth consecutive monthly decline, amidst falling dairy, meat, and vegetable oil prices, reaching their lowest levels since January 2025, according to the United Nations' Food and Agriculture Organization (FAO). The FAO Food Price Index noted an average of 124.3 points, a slight decrease from November's 125.1 points and a 2.3% drop from December 2024.

Throughout 2025, the index showed an average of 127.2 points, up 4.3% compared to 2024. While prices for vegetable oils and dairy products surged, cereal and sugar prices fell, the FAO reported. A significant December plunge in butter prices due to increased cream availability in Europe contributed to a 4.4% decrease in the dairy index; however, the annual average remained 13.2% above the previous year owing to earlier strong import demand and limited exportable supplies.

Meat prices fell by 1.3% in December, primarily driven by reductions in bovine and poultry categories. Yet, the yearly index stood 5.1% higher than 2024 levels due to robust global demand and geopolitical uncertainties. The vegetable oil index saw a marginal decline of 0.2% in December. Meanwhile, cereal and sugar indices displayed conflicting trends, reflecting complex global market dynamics.

(With inputs from agencies.)