Global food prices continued their downward trend in October 2025, marking the second consecutive monthly decline, according to the latest data released by the Food and Agriculture Organization (FAO) of the United Nations. The FAO Food Price Index averaged 126.4 points, down from 128.5 points in September, representing a fall of 21.1 percent from its peak in March 2022 when food prices had surged due to global supply disruptions.
The decline was mainly driven by sharp reductions in sugar and dairy prices, which dropped by 5.3 percent and 3.4 percent, respectively. The fall in sugar prices was attributed to strong export prospects and favorable weather conditions in major producing countries, while dairy prices eased due to increased milk production and weak import demand in several regions.
In contrast, vegetable oil prices recorded a modest 0.9 percent increase, supported by firm global demand and lower export availability from key producing nations. Other commodities, including cereals and meat, remained relatively stable with only minor price adjustments.
Alongside the price decline, the FAO also revised its forecast for 2025 global cereal production, projecting a record output of nearly 2.99 billion tonnes. This represents a 4.4 percent increase over 2024, largely due to strong performances in major cereal crops such as rice and maize, both expected to reach all-time high levels. Favorable weather, improved yields, and expanded cultivation areas in parts of Asia and South America have contributed to this growth.
While lower food prices are a relief for consumers and can help ease global food-security concerns, they also raise challenges for farmers and exporters who face reduced profit margins. Analysts note that despite abundant supplies, global demand and distribution imbalances continue to pose risks, especially in low-income countries that rely heavily on imports.
Experts suggest that continued monitoring of global trade patterns, climate conditions, and regional conflicts will be crucial to maintaining market stability. The FAO emphasized that while the outlook for food supply remains positive, sustainable support for farmers and efficient food distribution systems will be essential to ensure both affordability and fair returns across the agricultural value chain.
The latest FAO report reflects a cautiously optimistic picture — one of ample global food supply, but with the persistent need for balanced agricultural and trade policies to safeguard both consumers and producers.
By
